In a deeply reflective and strategic engagement with Nigeria’s judicial community, the Nigerian Deposit Insurance Corporation (NDIC) made a powerful appeal—not just for legal cooperation, but for humane understanding—in the adjudication of cases involving failed banks.
The occasion was a Sensitization Seminar for Judges of the National Industrial Court and Members of the Investment and Securities Tribunal, held at the Legend Hotel, Ikeja, Lagos. The seminar, which has become a key part of the NDIC’s judicial engagement since 2012, focused on the theme: “Strengthening Adjudication and Depositor Confidence in the Banking System.”
Delivering the welcome address, Mrs. Emily Osuji, the Acting Managing Director/Chief Executive of the NDIC, emphasized that financial stability is not only a matter of law and economics—it is also a matter of people’s lives, savings, and trust. She noted that while legal frameworks provide structure, humane application of those laws ensures justice and economic confidence.
“At the heart of every failed bank case are thousands of ordinary Nigerians—workers, pensioners, market women—who depend on our financial system to protect their life savings,” she said. “We urge our Honorable Judges to uphold not only the law but also the humane intent behind our mandate.”
Mrs. Osuji outlined NDIC’s four-pronged statutory responsibility—Deposit Guarantee, Bank Supervision, Distress Resolution, and Bank Liquidation—under the NDIC Act, No. 33 of 2023. She explained that the Corporation insures depositors up to ₦5 million in Deposit Money Banks and ₦2 million in other micro and payment banks, providing a vital safety net during institutional failures.
The Acting MD reflected on recent achievements, including the orderly closure of Heritage Bank, which was executed swiftly and efficiently to minimize hardship. She emphasized the Corporation’s proactive stance in managing banking distress and the consistent efforts to investigate and prosecute those responsible for mismanagement.
Yet, Mrs. Osuji candidly acknowledged persistent legal challenges that threaten the Corporation’s ability to fulfill its mandate—especially long, drawn-out employment-related court cases initiated by former staff of failed banks.
“We understand that these individuals also have rights and stories,” she said, “but we ask that in resolving these disputes, the courts apply a humane and balanced lens, one that protects depositors’ funds and respects the legal framework of claim priorities.”
Of particular concern, she said, are judgments that allow former staff to execute against NDIC’s corporate assets—actions that could derail depositor reimbursement efforts and delay bank resolution.
She urged the judiciary to carefully consider the priority of claims outlined in the 2023 Act during adjudication, and reminded participants that depositors—many of whom are financially vulnerable—must remain the primary focus.
“This is not just a technical legal issue; it is a social justice issue,” she noted. “The system must prioritize those with the least power but the greatest stake.”
Mrs. Osuji also praised the judiciary’s evolving role in interpreting complex financial matters and expressed optimism that continued collaboration would strengthen the banking system. She reiterated NDIC’s commitment to working with judges and tribunal members to enhance legal clarity and systemic trust.
The seminar included detailed presentations on The Investment and Securities Tribunal’s Jurisdiction and Depositor Protection, aimed at deepening legal understanding of deposit insurance principles and recent regulatory developments.
Closing her remarks, Mrs. Osuji expressed gratitude to the participants and urged them to continue applying both legal precision and human empathy in their rulings.
“On behalf of the Interim Management Committee, Board, and staff of the Corporation, I thank you for your attention and wish you fruitful deliberations,” she concluded.
The NDIC’s message was clear: while laws define mandates, humane judgment will determine how those laws affect the lives of millions who rely on the banking system for their future.
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