The Nigeria Deposit Insurance Corporation (NDIC) has stated that limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in Nigeria is largely responsible for the pool of unclaimed deposits following bank closures.
The Executive Director (Corporate Services) at NDIC, Mrs. Omolola Abiola-Edewor made the disclosure recently, while delivering a keynote address at the opening ceremony of the 2020 Sensitisation Seminar for Judges of the Federal High Court in Abuja with the theme: ‘The Challenges to Deposit Insurance Law and Practice in Nigeria.’
According to Abiola- Edewor, the phenomenon informed the concerted efforts by NDIC to continuously collaborate with the Judiciary and other stakeholders in promoting sound knowledge and understanding of the deposit insurance system over the years.
Abiola-Edewor who was quoted in a statement to have said the situation was a global challenge to deposit insurance system commended the active collaboration by the judges of the Federal High Court and the National Judicial Institute in the last nine years that the corporation commenced the annual seminar.
She said the NDIC would continue to jealously guard the relationship with the Judiciary.
She added that the current economic situation occasioned by the COVID-19 pandemic further underscored the need to strengthen the collaboration towards enhancing the stability of the financial system.
While describing judgments against the corporation for liabilities of failed banks under liquidation as another challenge confronting the corporation, the Executive Director noted that effective resolution of legal issues affecting the administration of the deposit insurance system was critical to the enhancement of safety and soundness of the banking system. She said the corporation would be looking forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges.
The Chief Judge of the Federal High Court, Justice John Tsoho noted that the seminar had gone a long way in broadening the knowledge of judges, not only in deposit insurance law and practice, but also in the workings and operations of the financial system.
He assured this had enhanced the discharge of the judges’ duties in the last nine years that the seminar was initiated.
The Administrator of the National Judicial Institute (NJI), Justice Rosaline Bozimo in her goodwill message stated that the seminar was aimed at consolidating on the gains of the NJI and NDIC in exposing judges to best practice in deposit insurance law in particular and the financial system in general.
She was represented by the Director of Research, Mr. Gbenga Omotesho