By Babajide Komolafe

The Nigeria Deposit Insurance Corporation, NDIC has appealed for  increased collaboration with the judiciary in order to overcome outstanding legal hurdles to deposit insurance in the country.

Speaking at  a sensitization seminar for Judges of The Federal High Court in Lagos, Acting Managing Director/Chief Executive, NDIC, Mrs. Emily Osuji, said that the corporation is still faced with some legal challenges in spite of achievements recorded in the  discharge of its mandate as sole deposit insurer and liquidator.  

According to Osuju, the seminar is one of the many initiatives of the Corporation designed to improve public awareness initiatives and frequently engage  the judiciary as critical stakeholders with the aim of addressing some of the identified challenges.  

The challenges, she said include long judicial proceedings and   execution of judgment against assets of the Corporation for liability of banks in liquidation.  

According to her, “Recent proceedings concerning the liquidation of Heritage Bank have presented opportunities to observe the application of the NDIC Act 2023, particularly section 69 of the Act which restricts the court from issuing certain orders against the NDIC when it is performing its core mandates, such as reimbursing insured deposits or acting as a liquidator.  

“This section further charges a claimant who has an issue with the NDIC in these scenarios, to only seek recourse of monetary damages, and these are capped at specific amounts (e.g., the insured deposit for depositors, or the nominal share value for shareholders). 

However, the Corporation’s discharge of the afore mentioned mandate had, in some instances, been restricted by Court Orders.  

“Furthermore, legal actions are being entertained against failed insured institutions and the NDIC without leave notwithstanding the provisions of the law prohibiting the same. Similarly, enforcement actions, such as garnishee orders or attachments, against the NDIC itself or the assets of failed insured institutions are permitted by the Court.  

“The Corporation in its bid to address some of the identified challenges has improved public awareness initiatives and frequently engages the judiciary as critical stakeholders. This is expected to further assist the Corporation in achieving its mandate as a deposit insurer in line with the Core Principles of Deposit Insurers as set out by the International Association of Deposit Insurers (IADI).”