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umaru Ibrahim

Insurance Sector: Judiciary, NDIC Partner To Entrench Fairness, Stability

Federal High Court and NDIC are said to evolve working relationship to foster financial system stability in the country

Anurika Nwachukwu

Federal High Court and Nigerian Deposit Insurance Corporation (NDIC) have recently revealed a working partnership aimed at entrenching fairness and stability in the insurance sector for the benefit of entire economy. This is according to the Chief Judge of Federal High Court, Justice Ibrahim Auta. Speaking recently at a one-day seminar themed : “2015 Annual Sensitizations Seminar for Judges of the Federal High Court’’ organised by the NDIC for judges of the Federal High Court, in collaboration with the court on Saturday.

He observed in his remark that the judiciary was an important stakeholder which played a critical role in ensuring the maintenance of depositors’ confidence and financial system stability in Nigeria. He said: “Our unique court is constitutionally reposed with exclusive jurisdiction in respect to Nigerian Deposit Insurance Corporation (NDIC) activities. “We are, therefore, integral and certainly indispensable, to the holistic implementation, realisation and accomplishment of the NDIC mandates as provided in the NDIC Act.

“The objectives of this programme are being achieved; judges are now better informed, not only on NDIC operations, but on the dynamics of financial services and, indeed, the economy as a whole.’’ He noted that judges were presently better positioned to deal with complex financial disputes and developing core competences in banking matters, which culminate in quicker justice delivery. Apart from a robust legal framework and structure of the banking system, which were panacea for ensuring financial system stability, he said there were also other factors critical to NDIC’s role in this regard.

He enumerated them to include: macro-economic stability, soundness of the financial system and high threshold of supervision and regulations. Auta observed that the corporation’s current efforts at the National Assembly aimed at amending its extant laws was clear evidence of the recognition of the feedback from the deliberations at the annual NDIC seminar for judges.

The Chief Judge noted that “when the revised NDIC Act is eventually passed into Law by the National Assembly, it would complement the judiciary in the rationalisation of the Deposit Insurance Jurisprudence.” He, implored the corporation to take steps to put in place stiffer penalties necessary for curbing the fraudulent activities of “uninsured banks, otherwise called wonder banks.’’

In his keynote address, the Managing Director, NDIC, Alhaji Umaru Ibrahim, explained that the aim of the seminar was for stakeholders to deliberate on the challenges facing the deposit insurance law and practice. According to him,the corporation had identified various important stakeholders and made efforts to collaborate with them on issues that pertain to the stability of the Nigerian financial system, with the Federal High Court as one of them.

He said the NDIC already had an existing committed partnership with the Nigerian Bench and Bar in its efforts to become one of the leading deposit insurers in the world. The NDIC Boss said the corporation had achieved its goals through the sensitisation seminars it had been organising for judges over the last three years. This, he said was “evident in informed court judgments, encouraging feedback from the Bar and Bench, and increased awareness on deposit insurance dynamics.”

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