Why Deposits In Closed Banks Remain Unclaimed – NDIC

The management of the Nigeria Deposit Insurance Corporation (NDIC), on Friday, blamed the large pool of unclaimed deposits arising from bank closures mainly on the limited understanding and the widespread misconception of the Deposit Insurance System (DIS) in the country.

Delivering a keynote at the opening ceremony of the 2020 Sensitization Seminar for Judges of the Federal High Court in Abuja, NDIC’s Executive Director (Corporate Services), Mrs Omolola Abiola-Edewor, said this is responsible for the concerted efforts to continuously partner the judiciary and other stakeholders to promote understanding of the deposit insurance system over time. 

Speaking on the theme: The Challenges to Deposit Insurance Law and Practice in Nigeria, Abiola- Edewor, however noted that the challenge is global to th deposit insurance community.

She commended the active collaboration by the Federal High Court judges as well as the National Judicial Institute over the last nine years since the corporation commenced the annual seminar.

The NDIC, the Executive Director further assured, would continue to jealously guard its 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, the Executive Director said 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 NDIC looks forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways to address these challenges.

Commenting, Chief Judge of the Federal High Court, 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 in the workings of the financial system.

This, he assured, had enhanced the ability of the judges to discharge their duties over the last nine years that the seminar was held.

In her goodwill message, Administrator of the NJI, Justice Rosaline Bozimo said the seminar was aimed at consolidating on the gains of the collaboration between 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, Gbenga Omotesho.

Facilitators at the seminar included Justice Nelson Ogbuanya of National Industrial Court of Nigeria, who gave “An Overview of the Companies and Allied Matters Act 2020,” which was discussed by Garba Abubakar, Registrar-General of the Corporate Affairs Commission; Dr. Adekemi Omotubora of Faculty of Law, University of Lagos, “Evolving Cyber Risk and Future of Virtual Banking in Nigeria,” which was discussed by Dr. Kabiru Katata, Deputy Director, Research, Policy and International Relations Department of the NDIC. The topic: “Non-interest Banking and Deposit Insurance in Nigeria,” was presented by Prof. Ahmad Bello Dogarawa, Director and Member, Advisory Committee of Experts, Jaiz Bank and discussed by Galadima Gana, Director, Insurance & Surveillance Department of the NDIC.

Photo caption: Chief Judge of the Federal High Court, Justice John Tsoho, welcoming the Executive Director (Corporate Services), NDIC, Mrs. Omolola Abiola-Edewor; to the opening ceremony of the 2020 NDIC Sensitization Seminar for Judges of the Federal High Courts in Abuja on Friday, December 18, 2020.