Why pool of deposits in closed banks remain unclaimed – NDIC

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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, Friday, 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 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 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, Justice John Tosho, 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), 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 included ‘An Overview of the Companies and Allied Matters Act 2020’ by 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.

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