Why Pool Of Deposits In Closed Banks Remain Unclaimed – NDIC
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.
The Executive Director, Corporate Services of NDIC, Hon (Mrs) Omolola
Abiola-Edewor made this disclosure on Thursday while delivering her keynote
address at the opening ceremony of the 2020 Sensitization Seminar for
Judges of the Federal High Court in Abuja with the theme: 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 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, adding 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 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 would be looking forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges.
The 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 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 her goodwill 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.
She was represented by the Director of
Research, Mr. Gbenga Omotesho.
The papers presented at the seminar were as follows: An Overview of the
Companies and Allied Matters Act 2020 by Hon. Justice Nelson Ogbuanya
of National Industrial Court of Nigeria and discussed by Garba Abubakar,
Registrar-General of the Corporate Affairs Commission; Evolving Cyber Risk
and Future of Virtual Banking in Nigeria by Dr. Adekemi Omotubora of
Faculty of Law, University of Lagos and discussed by Dr. Kabiru Katata,
Deputy Director, Research, Policy and International Relations Department
of the NDIC; and Non-interest Banking and Deposit Insurance in Nigeria by
Prof. Ahmad Bello Dogarawa, Director and Member, Advisory Committee of
Experts, Jaiz Bank and discussed by Mr. Galadima Gana, Director,
Insurance & Surveillance Department of the NDIC.
