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Bank Closures: Widespread Misconception Responsible For Unclaimed Deposits – NDIC

-by our correspondent.

Narrow understanding and widespread misconception of the Deposit Insurance System (DIS) in Nigeria is largely responsible for the pool of unclaimed deposits following bank closures.

The Executive Director (Corporate Services) of NDIC, Omolola Abiola-Edewor, disclosed this in her keynote address with the theme: The Challenges to Deposit Insurance Law and Practice in Nigeria, at the opening ceremony of the 2020 Sensitization Seminar for Judges of the Federal High Court in Abuja.

 L – R: Chief Judge of the Federal High Court, Hon. Justice John Tsoho welcoming Executive Director (Corporate Services) NDIC, Omolola Abiola-Edewor; to the opening ceremony of the 2020 NDIC Sensitization Seminar for Judges of the Federal High Courts in Abuja.

Abiola- Edewor, noted that the limited understanding and widespread misconception was a global challenge to deposit insurance system. “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.” She said.

The NDIC Executive Director commended the active collaboration by the honourable judges of the Federal High Court and the National Judicial Institute in the past nine years since the Corporation commenced the annual seminar. 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.

 L – R: Director, Legal Department, NDIC, Belema Taribo; Executive Director (Corporate Services) Omolola Abiola-Edewor; Chief Judge of the Federal High Court, Hon. Justice John Tsoho; CEO, Alheri Legal & Allied Services, Alheri Nyako; and Director, Communication & Public Affairs Department, NDIC, Bashiru A. Nuhu at the opening ceremony of the 2020 NDIC Sensitization Seminar for Judges of the Federal High Courts in Abuja

While describing judgments against the Corporation for liabilities of failed banks under liquidation as another challenge confronting the Corporation, Abiola- Edewor 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.

‘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,” she said.

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