Excessive Litigations Hinder NDIC’s Mandate

The Nigeria Deposit Insurance Corporation (NDIC), has identified excessive litigations as a critical challenge confronting the corporation in discharging its mandate.
The Managing Director of the corporation, Alhaji Umaru Ibrahim, stated this in a statement made available to The Tide  and signed by its Head of Communications and Public Affairs Department, Mr Hadi Birchi.
Ibrahim also said that lack of proper understanding of the distinction between its status as a corporate entity and its role as liquidator, was also a challenge.
He said that the corporation had been experiencing the execution of court judgements against its assets, over the liabilities of banks in liquidation.
Ibrahim added that the corporation had also faced difficulties associated with the recovery of debts owed to the failed banks.
He, therefore, appealed to the judiciary to address these legal challenges, to enable the corporation achieve its mandate of depositor protection and the stability of the Nigerian banking sector.
“We recognise that no matter how robust the legal framework operated by the NDIC is, the corporation cannot achieve much without the cooperation and vital input from the Nigerian Judiciary,” the statement quoted the NDIC chief executive as saying.
The NDIC boss described the role of the Court of Appeal as critical, given its constitutional appellate jurisdiction over decisions of the State and Federal High Courts, where most of the failed banks’ related cases were being handled.
He, therefore, urged the judiciary and legal practitioners to play their respective roles effectively, to empower the corporation to discharge its mandate in the overall interests of depositors and the Nigerian banking system.