A sensitisation seminar for judges examined deposit insurance law and the challenges of handling failed-bank litigation in Nigeria's courts.
The Nigeria Deposit Insurance Corporation (NDIC) convened a two-day sensitisation seminar for judges of the Federal High Court and state Commercial Courts, focusing on the legal framework governing deposit insurance, bank resolution, and the Corporation’s powers and limitations as a statutory liquidator.
The seminar was designed to address a recurring challenge in the resolution process: court injunctions obtained by bank shareholders or large depositors that delay the NDIC’s ability to act swiftly in protecting insured depositors.
Key Topics
Sessions covered the statutory basis for the NDIC’s appointment as liquidator, the hierarchy of creditor claims in bank liquidation, the distinction between insured and uninsured deposits, and the Corporation’s obligation to maximise asset recovery for the benefit of all creditors.
Judicial Feedback
Feedback from participating judges was broadly positive, with many noting that the seminar had clarified aspects of the NDIC Act that had previously been sources of interpretive uncertainty. The Chief Judge of one state commercial court noted that the session would directly inform the court’s handling of pending failed-bank matters.