Nigeria: UBA’s Alawuba Calls for Judicial Reforms to Strengthen Nigeria’s Financial Stability

Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA) Plc and Chairman of the Body of Bank CEOs, has called for urgent judicial reforms to address systemic inefficiencies that are raising Nigeria’s financial risk profile and hindering economic growth.

Speaking at the 23rd National Seminar on Banking and Allied Matters for Judges—jointly organised by the Chartered Institute of Bankers of Nigeria (CIBN) and the National Judicial Institute (NJI) in Abuja—Alawuba emphasised the critical role of the judiciary in enabling a stable and resilient financial system.

Delivering remarks on the theme “Justice and Finance in Partnership: Enabling Trust, Security and Nigeria’s Economic Growth,” Alawuba highlighted that delays in judicial processes, overlapping jurisdictions, and enforcement challenges have become major impediments to credit delivery and financial sector efficiency.

“Judicial delays and legal enforcement bottlenecks continue to elevate the risk profile of financial transactions in Nigeria. These challenges are not merely procedural—they directly impact access to credit, escalate the cost of capital, and restrict banks’ ability to fund SMEs and foster employment,” he said.

Citing April 2025 data, Alawuba noted that non-performing loans (NPLs) in the banking sector had climbed to over ₦1.57 trillion, attributing part of the rise to protracted legal disputes and difficulties in loan recovery.

He stressed that a robust and predictable legal framework is essential for building trust and encouraging financial intermediation.

“No economy can thrive without the rule of law. An impartial, efficient judiciary is a critical enabler of economic development and investor confidence,” he said.

To address these challenges, Alawuba recommended a suite of reforms, including:

• Digitisation of judicial processes to enhance efficiency and transparency;
• Establishment of specialised financial courts to fast-track resolution of banking and finance-related disputes;
• Harmonisation of legal frameworks across jurisdictions to eliminate inconsistencies and promote predictability in adjudication.

He reiterated the need for closer collaboration between the judiciary and financial institutions to ensure the legal infrastructure can support Nigeria’s evolving economic landscape.

“Strengthening the synergy between justice and finance is not optional—it is a prerequisite for economic transformation,” Alawuba concluded.