The Nigeria Deposit Insurance Corporation (NDIC) has attributed the high level of unclaimed deposits of failed banks to limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in Nigeria.
The Executive Director (ED), Corporate Services of NDIC, Mrs Omolola Abiola-Edewor, made this disclosure on Friday, while delivering her keynote address at the opening ceremony of the 2020 Sensitization Seminar for Judges of the Federal High Court in Abuja.
According to Mrs Abiola- Edewor, this phenomenon has informed the concerted efforts by NDIC to continuously collaborate with the Judiciary and other stakeholders with a view to promoting public awareness of deposit insurance.
She said the situation was a global challenge to deposit insurance system and commended the active collaboration by the honourable judges of the Federal High Court and the National Judicial Institute in the last nine years that the Corporation commenced the annual seminar.
She said the NDIC would continue to jealously guard the relationship with the Judiciary. She added that the current economic situation occasioned by the COVID-19 Pandemic has further underscored the need to strengthen the collaboration towards enhancing the stability of the financial system.
While describing judgments against the NDIC for liabilities of failed banks under liquidation as another challenge confronting the corporation, she 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.
The Chief Judge of the Federal High Court, Honourable Justice John Tosho, in his remarks, 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 this had enhanced the discharge of the judges’ duties in the last nine years that the seminar was initiated.
The Administrator of the National Judicial Institute (NJI), Hon Justice Rosaline Bozimo in a message stated that the seminar was aimed at consolidating on the gains of the NJI and NDIC in exposing judges to best practice in deposit insurance law in particular and the financial system in general.