The National Judicial Institute and the Nigeria Deposit Insurance Corporation on Monday convened a sensitisation seminar for Justices of the Court of Appeal in Lagos, aimed at strengthening judicial capacity in bank liquidation matters and enhancing depositor protection within Nigeria’s financial system.
The seminar, held in Lekki, Lagos, focused on how the judiciary can better respond to disputes arising from failed banks and ensure that judicial decisions support financial stability and public confidence in Nigeria’s banking system. The seminar was themed “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection.”
Speaking at the event, the Administrator of the NJI, Justice Babatunde Adejumo, said the programme was designed to equip appellate justices with deeper knowledge of the legal and technical issues surrounding bank liquidation.
He said confidence remains the foundation of every banking system and warned that when depositors lose their funds due to bank failures, the effect goes beyond individual losses.
“What makes depositors invest is confidence. When investments go down the drain for one reason or another, it affects the image of the country and discourages people from doing business with financial institutions,” he said.
According to Adejumo, judges handling financial sector disputes must understand not only the law but also the operational realities of the banking system. “Judges must know how the laws operate, how the technical aspects are handled by bankers, and the concerns of depositors when things go wrong,” he said.
He noted that regular workshops and seminars remain necessary to keep judges updated on changes in financial regulations and the challenges confronting institutions such as the NDIC.
Adejumo said the collaboration between the NJI and NDIC over the years had produced positive results and expressed confidence that the latest engagement would further improve judicial decision-making in financial disputes.
He also used the opportunity to address concerns about public perception of the judiciary. According to him, criticism of the courts is often shaped by personal interest and a limited understanding of how the justice system works.
“In every society, there is perception, and there is reality. The person who wins a case praises the court, but once that same person loses another matter, the court is suddenly accused of wrongdoing,” he said.
He explained that delays in the justice system are frequently linked to the huge volume of cases before judges. “If a judge has 500 cases on the docket, before 100 are concluded, another 400 may have been filed. To the ordinary man, it appears the court is not working, but they do not understand the pressures within the system,” he said.
While admitting that there have been instances of misconduct by some judicial officers, Adejumo said such cases do not define the institution. “The National Judicial Council is not sparing anyone found wanting, but that does not mean the judiciary is bad. I can assure Nigerians that the judiciary will not fail,” he said.
He also appealed to journalists to report judicial proceedings responsibly. “The media has an important role to play. Report accurately. Don’t rely on one-sided interpretations of judgments. Go to the registry, get the facts, and present the full picture,” he said.
“We are not an autocratic judicial system; we are a democratic judicial system that listens to the people and works according to the law,” he added.
In her keynote address, the President of the Court of Appeal, Justice Monica Dongban-Mensem, commended the National Judicial Institute and the Nigeria Deposit Insurance Corporation for organising a sensitisation seminar aimed at strengthening judicial capacity in handling cases involving financial institutions.
Justice Dongban-Mensem described the seminar as an important and well-packaged programme and expressed appreciation to the organisers for putting it together for appellate justices.
She said, “It is not a new thing for such collaborative efforts between the NJI, the judiciary, and the NDIC, among other financial institutions in Nigeria, to organise events of this nature in order to generate awareness and sensitise honourable judges and justices of the Federal Republic of Nigeria on the peculiarities in cases involving financial institutions and related matters.”
Dongban-Mensem, who was represented by Justice Ali Gumel of the Kano Division of the Court of Appeal, conveyed the apologies of the President of the Court of Appeal for her inability to attend the event, citing pressing official engagements.
According to him, collaborative engagements of this nature between the NJI, the judiciary, and financial institutions such as the NDIC have become essential platforms for enhancing judicial understanding of the peculiarities of cases involving banking and other financial institutions.
He noted that the seminar was part of a series of similar engagements that had, over time, strengthened judicial decision-making in financial sector disputes. “This event happens to be one of such collaborative efforts. I believe, like all the previous ones, this too will meet the expectations of Your Lordships. This series of interactions has no doubt assisted judges in their decision-making,” he stated.
Justice Gumel expressed confidence in the quality of the resource persons lined up for the programme, noting that the guest speakers and discussants were well known for their expertise and competence.
“From what I have seen on the programme, the distinguished guest speakers and discussants are very well known to us, and their capacities to do justice to the topics allocated to them are not in any doubt,” he said.
Also speaking at the event, the Managing Director and Chief Executive Officer of the NDIC, Mr Thompson Sunday, said effective bank liquidation depends significantly on timely and well-reasoned judicial decisions.
Sunday, who was represented by the Executive Director, Corporate Services, Mrs Emily Osuji, said the seminar was part of the corporation’s strategic efforts to strengthen collaboration with the judiciary, particularly the appellate court, whose decisions significantly impact bank resolution processes.
He noted that the NDIC, as a statutory financial safety-net institution, is responsible for deposit guarantees, banking supervision, distress resolution and the liquidation of failed banks, often following the revocation of licences by the Central Bank of Nigeria.
According to him, the effective discharge of these mandates depends largely on the clarity, consistency and timeliness of judicial pronouncements, especially at the appellate level where legal principles are firmly established.
“The successful discharge of these mandates cannot occur in isolation. It is deeply dependent on the clarity, consistency and timeliness of judicial pronouncements, particularly at the appellate level,” he said.
Sunday explained that bank liquidation processes are often complex, involving challenges such as concealed or dissipated assets, poorly collateralised loans, and competing claims from depositors, creditors, and former employees.
He said these complexities frequently give rise to multifaceted legal disputes, including issues relating to creditor hierarchy, enforcement of claims, asset realisation, and contractual obligations.
“As financial transactions become increasingly sophisticated and regulatory frameworks continue to evolve, it has become imperative to foster sustained dialogue and mutual understanding between the NDIC and the judiciary,” he said.
He added that the seminar was designed to provide a platform for sensitisation and capacity building, as well as to deepen judicial understanding of the NDIC’s statutory mandate, liquidation procedures, and depositor reimbursement frameworks.
He noted that improved understanding of these processes would help reduce delays, minimise conflicting judicial decisions, and strengthen public confidence in the banking system. Sunday also emphasised that sound judicial decisions play a direct role in boosting depositor confidence, investor trust, and the resilience of the national economy.
Citing international standards, he noted that global best practices, including those of the Basel Committee on Banking Supervision and the International Association of Deposit Insurers, highlight the importance of a strong legal framework supported by an efficient and independent judiciary.
He urged the justices to actively participate in the seminar, noting that its success would depend not only on the quality of presentations but also on meaningful engagement and exchange of ideas.
The NDIC boss expressed appreciation to the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, the President of the Court of Appeal, and participants for their continued collaboration and commitment to strengthening Nigeria’s financial system.
