NDIC, Judges Unite to Fast-Track Failed Bank Cases and Protect Depositors

Acting Managing Director/Chief Executive Officer of NDIC, Mrs. Emily Osuji

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to strengthening Nigeria’s financial system through greater judicial collaboration, as it hosted a sensitization seminar for judges of the Federal High Court on Monday, June 23, 2025, at the Legend Hotel, Ikeja, Lagos.

The seminar, themed “Strengthening Adjudication and Depositor Confidence in the Banking System,” brought together senior members of the judiciary, NDIC executives, and key stakeholders to deliberate on the legal frameworks and challenges surrounding bank resolution and liquidation in Nigeria.

Delivering the welcome address, Acting Managing Director/Chief Executive Officer of NDIC, Mrs. Emily Osuji, highlighted the critical role judges play in the effective implementation of the Corporation’s mandate. She noted that collaboration with the judiciary, which began in 2012, remains vital in ensuring timely and lawful resolution of failed banks and in safeguarding depositor funds.

“This seminar is aimed at building capacity, fostering collaboration, and enlightening our judges as key stakeholders in adjudicating failed bank matters. It is also intended to promote public confidence in the banking sector,” Mrs. Osuji said.

Established in 1988 and currently operating under the NDIC Act No. 33 of 2023, the Corporation is mandated to guarantee deposits, supervise banks, resolve distress, and liquidate failed institutions. Mrs. Osuji revealed that NDIC now guarantees up to ₦5 million per depositor in deposit money banks (including non-interest banks and mobile money operators) and up to ₦2 million in primary mortgage, microfinance, and payment service banks.

She commended the Corporation’s recent intervention in the orderly resolution of Heritage Bank, describing the action as swift, effective, and consistent with global best practices. However, she pointed out several legal challenges that continue to hamper the NDIC’s operations.

“We have encountered issues such as prolonged court proceedings, judgments against the Corporation for liabilities of failed banks, and disregard for provisions that restrict certain court orders against the NDIC during liquidation and deposit reimbursement,” she stated.

Specifically, Mrs. Osuji referenced Section 69 of the NDIC Act 2023, which bars the issuance of court orders against the Corporation while performing core functions like acting as a liquidator or reimbursing depositors. She added that despite these statutory protections, courts have continued to grant enforcement actions such as garnishee orders against NDIC and the assets of failed institutions.

While commending the Chief Judge of the Federal High Court for issuing new Winding Up Rules and Practice Directions in line with the Act, she urged for their speedy gazetting to ensure full legal compliance and operational clarity.

As part of efforts to address legal uncertainties and improve stakeholder understanding, the NDIC has continued to increase public awareness and judicial engagement. The Acting MD emphasized that this approach aligns with international standards set by the International Association of Deposit Insurers (IADI).

“This seminar forms part of our broader strategy to enhance stakeholder cooperation and ensure the effective discharge of our mandate. The papers presented today will offer crucial insights on judicial oversight in failed bank cases,” she said.

Mrs. Osuji concluded by thanking the judges, guests, and stakeholders in attendance, reiterating NDIC’s commitment to transparency, rule of law, and the protection of depositors’ interests.

The seminar is part of a series of capacity-building initiatives by the NDIC to engage the judiciary and reinforce the legal framework underpinning Nigeria’s deposit insurance system.

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