James Emejoin Abuja

Group Managing Director/Chief Executive, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba, yesterday, raised concerns over the Non-performing Loan (NPL) portfolio in the banking sector, valued at N1.57 trillion, describing it as a symptom of deeper institutional weaknesses that need to be tackled.

Speaking at the opening of the 23rd National Seminar on Banking and Allied Matters for Judges, in Abuja, Alawuba, who is Chairman of the Body of Bank CEOs, said the development could further hamper credit disbursement to the real sector without a functional and efficient judicial system.

NPLs have continued to pile amid judicial delays and enforcement bottlenecks.

The UBA CEO urged the judicial to do more to salvage the situation.

The seminar was jointly organised by Chartered Institute of Bankers of Nigeria (CIBN) and National Judicial Institute (NJI) at the NJI headquarters in Abuja.

Alawuba said the country’s financial system was exposed to systemic risk due to the judiciary’s current limitations in handling commercial and financial disputes, highlighting the huge volume of bad loans in the industry.

He said, “Without a strong, efficient judiciary, banks will struggle to extend credit with confidence,” adding, “Our partnership is not one of convenience, but of necessity.”

He called for urgent reforms to enhance judicial performance in financial matters, including digitisation of court processes, investment in judicial capacity building, and the establishment of specialised financial courts to handle complex cases involving fraud, cybercrime, and contract enforcement.

Alawuba said the banking industry’s success was tied to the effectiveness of the courts.

According to him, “No economy can flourish without the enabling guardrails of justice. From credit systems to contract enforcement, the banking industry depends daily on the efficiency, fairness, and predictability of our judicial processes.”

He stressed that the courts must evolve to meet the demands of a rapidly transforming financial landscape, especially as digital platforms, fintech innovation, and cybercrimes became more entrenched in Nigeria’s financial ecosystem.

Alawuba stated, “In Nigeria, however, judicial delays, overlapping jurisdictions, and enforcement challenges continue to increase the risk profile of financial transactions.

“Prolonged litigation and enforcement bottlenecks are not mere technicalities, they impede credit access, raise the cost of capital, and limit the capacity of banks to support SMEs and job creation.”

Chief Justice of Nigeria (CJN), Justice KudiratKekere-Ekun, also stressed the strategic importance of judicial predictability in promoting economic growth.

Kekere-Ekun said, “Judicial predictability is not just a legal virtue, it is an economic asset. It enhances market efficiency, lowers risk premiums, and unlocks capital for infrastructure and business development.”

She urged members of the bench to constantly update their knowledge in emerging fields of financial regulation and digital commerce.

The CJN said, “Our courts must possess the capacity to interpret complex transactions and assess novel financial arrangements within the framework of existing laws.”

President/Chairman of Council, CIBN, Professor Pius Olanrewaju, said trust and security remained central pillars of banking, maintaining that the role of the judiciary cannot be separated from the stability of the banking system.

Olanrewaju said, “Trust is the lifeblood of banking, and security its bedrock. Every financial transaction, from deposits to loans, hinges on the assurance that rights will be upheld, obligations fulfilled, and injustices addressed.”

He maintained that courts must inspire confidence in the resolution of financial disputes and protect the sanctity of contracts, as failure to do so could undermine investor confidence and hinder the nation’s economic growth.

Administrator of the National Judicial Institute, Hon. Justice SalisuAbdullahi, also linked judicial efficiency to national development, saying a competent and independent judiciary is fundamental to investor confidence and economic stability.

Abdullahi said, “A judiciary that is both competent and fiercely independent doesn’t just resolve disputes; it actively underwrites economic growth. It creates the fertile ground where capital feels safe to land, innovation can flourish, and businesses can thrive.”