The Nigeria Deposit Insurance Corporation (NDIC) has stated that a limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in Nigeria was largely responsible for the pool of unclaimed deposits following bank closures.
Executive Director (Corporate Services) of NDIC, Mrs. Omolola Abiola-Edewor made this known while delivering her keynote address at the opening ceremony of the 2020 Sensitisation Seminar for Judges of the Federal High Court in Abuja themed “The Challenges to Deposit Insurance Law and Practice in Nigeria”.
According to Abiola- Edewor, this phenomenon has informed the concerted efforts by NDIC to continuously collaborate with the Judiciary and other stakeholders in promoting sound knowledge and understanding of the deposit insurance system over the years.
Abiola-Edewor who said the situation was a global challenge to deposit insurance system commended the active collaboration by the judges of the Federal High Court and the National Judicial Institute in the last 9 years.
While describing judgments against the Corporation for liabilities of failed banks under liquidation as another challenge confronting the Corporation, the Executive Director noted that effective resolution of legal issues affecting the administration of the deposit insurance system was critical to the enhancement of safety and soundness of the banking system.
She said the Corporation was looking forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges.
Chief Judge of the Federal High Court, Honourable Justice John Tsoho noted that the seminar had gone a long way in broadening the knowledge of judges, not only in deposit insurance law and practice, but also in the workings and operations of the financial system. He assured that this had enhanced the discharge of the judges’ duties for the last nine years that the seminar was initiated.