The Administrator, National Judicial Institute (NJI), Justice Babatunde Adejumo, has warned that financial stability could be severely undermined without a strong and credible legal framework to support the economy.
Adejumo stated this on Monday, during the opening ceremony of a sensitisation seminar for Justices of the Court of Appeal organised by the NJI in collaboration with the Nigeria Deposit Insurance Corporation (NDIC) held in Lekki, Lagos.
The seminar, themed: “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection,” focused on strengthening judicial understanding of the legal and regulatory dimensions of bank liquidation proceedings and their implications for financial stability.
Adejumo said confidence in financial institutions and the legal processes guiding their operations remains critical to the effective functioning of the banking sector.
According to him, whenever financial institutions experience distress or collapse, the effects are often widespread, impacting depositors, creditors, businesses and public trust in the broader financial system. “The stability of financial institutions remains a matter of considerable national importance. Banking systems function effectively where there is confidence in the institutions that support them and in the legal processes that govern their operation.
“Hence, when financial institutions experience distress or collapse, the consequences are often far-reaching, affecting depositors, creditors, businesses, and public confidence in the broader financial system,” he said.
He noted that bank liquidation proceedings usually involve complex legal and regulatory issues, including creditor priorities, depositor reimbursement, recovery mechanisms, statutory powers and the management of competing financial interests.
According to him, such matters require careful judicial scrutiny and disciplined statutory interpretation.
Adejumo described the Court of Appeal as pivotal to the development of Nigeria’s banking and financial jurisprudence, noting that its pronouncements often shape legal interpretation across the sector and guide lower courts, regulators and market participants.
“The Court of Appeal occupies a critical position within this framework. As an appellate court, its decisions contribute significantly to the development of coherent and predictable jurisprudence in banking and financial regulation,” he said.
He added that the seminar was designed to deepen institutional understanding of the legal and regulatory dimensions of bank liquidation and depositor protection while encouraging meaningful engagement on issues likely to remain prominent in financial and commercial adjudication.
The NJI administrator also commended the Chief Justice of Nigeria and Chairman of the NJI Board of Governors, Justice Kudirat Kekere-Ekun, for her commitment to institutional reform and judicial capacity development.
He further praised Justice John Inyang Okoro, Chairman of the Education Committee of the NJI Board of Governors, and other committee members for sustaining the quality of the institute’s programmes.
Adejumo equally acknowledged the collaboration of the NDIC under its Managing Director and Chief Executive Officer, Mr Thompson Oludare Sunday, describing the partnership as vital to strengthening institutional engagement between the judiciary and financial sector regulators.
In his welcome address, the NDIC Managing Director, represented by the corporation’s Executive Director, Corporate Services, Mrs Emily Osuji, said the seminar formed part of the corporation’s strategic efforts to strengthen collaboration with the judiciary, particularly the Court of Appeal.
She noted that decisions of the appellate court significantly affect the effectiveness of bank resolution, liquidation and depositor protection in Nigeria.
Osuji said the seminar’s theme highlighted the judiciary’s responsibility in safeguarding public confidence in the financial system through fairness, transparency, equity and integrity in the administration of justice.
