The Nigerian Deposit Insurance Corporation (NDIC) has reminded the judiciary to always follow the NDIC Act, 2023, when deciding cases involving former employees of failed banks.
Acting Managing Director/Chief Executive of NDIC, Emily Osuji, during a sensitisation seminar for judges of the National Industrial Court, and members of the Investment and Securities Tribunal in Lagos said, “Cases involving severance packages, outstanding salary arrears, and exit packages for former employees of banks undergoing liquidation warrant careful consideration.”
The seminar was organised by NDIC and the National Judicial Institute (NJI) to deepen collaboration between the stakeholders.
The Ag. MD/CEO said, “It is important for judges of the National Industrial Court to re-examine the priority of claims as stipulated under the NDIC Act, 2023, when adjudicating such matters.
“This approach is crucial to ensure the protection of the law on priority of claims in bank liquidation.
“Employment cases initiated by former staff of failed banks against the Nigeria Deposit Insurance Corporation, particularly those litigated before the National Industrial Court, present a significant challenge to the NDIC’s mandate of liquidation.”
She also stated that though the corporation had recorded some achievements, particularly the orderly and efficient closure of Heritage Bank, the lawsuits from former bank employees and court rulings have been stalling its mandate.
She noted that the corporation, in its bid to address some of the identified challenges, has improved public awareness initiatives and frequently engages the judiciary as critical stakeholders.
The Administrator of the National Judicial Institute (NJI), Hon. Justice Salisu Garba Abdullahi, noted that depositor’s confidence is the bedrock upon which the banking sector thrives, adding that, “judicial decisions play a crucial role in reinforcing that confidence.”
“When courts adjudicate cases relating to deposit insurance and financial disputes, they set legal precedents that shape regulatory frameworks, enhance investor protection, and stabilise financial institutions.
“Consequently, a key component of the deliberations that will ensue over the next few days will be the identification of strategies to fortify deposit insurance mechanisms and streamline judicial responses to financial instability.
“It is imperative for judicial officers to comprehend not only the technicalities of financial laws but also their far-reaching implications on economic stability,” he said.
