The Nigeria Deposit Insurance Corporation (NDIC) has called for stronger collaboration with the judiciary to address legal obstacles affecting its work as the country’s sole deposit insurer and bank liquidator.
Speaking at a sensitization seminar for Federal High Court Judges in Lagos, the Acting Managing Director of NDIC, Mrs. Emily Osuji, noted that despite the agency’s progress, it still faces major legal challenges.
She explained that the seminar is part of NDIC’s efforts to engage the judiciary and raise awareness about the corporation’s role and the legal issues it faces. One of the key concerns raised was the delay in court proceedings and the enforcement of judgments against NDIC or assets of liquidated banks.
Mrs. Osuji pointed to recent cases, including the liquidation of Heritage Bank, as examples where the new NDIC Act 2023 should protect the corporation. She highlighted Section 69 of the Act, which limits court orders against NDIC when it is performing key duties like paying insured deposits or managing bank liquidations.
She added that claimants are only entitled to monetary compensation within specific limits, such as insured deposit amounts or the face value of shares. However, in some cases, court rulings have still hindered NDIC from carrying out its responsibilities.
The NDIC chief also expressed concern over lawsuits filed against failed banks and NDIC without proper legal approval, despite the law prohibiting such actions. Some courts have even allowed garnishee orders against NDIC or liquidated banks, further complicating their work.
To tackle these issues, NDIC is increasing public awareness and deepening its relationship with the judiciary. Osuji said these steps are essential for the corporation to fulfill its mandate in line with international best practices set by the International Association of Deposit Insurers (IADI).