Why Deposits In Closed Banks Remain Unclaimed — NDIC

Nigeria Deposit Insurance Corporation (NDIC) on Friday revealed
that a limited understanding and the widespread misconception of
the Deposit Insurance System (DIS) in Nigeria was largely
responsible for the pool of unclaimed deposits following bank
closures.

Executive Director (Corporate Services) of NDIC, Mrs Omolola
Abiola-Edewor, made this disclosure on Friday while delivering an
address at the opening ceremony of the 2020 Sensitisation Seminar
for Judges of the Federal High Court in Abuja with the theme: The
Challenges to Deposit Insurance Law and Practice in Nigeria.

In a statement issued by Director, Communication & Public
Affairs Department, Bashir A. Nuhu, Abiola-Edewor explained the
phenomenon had informed the 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.

Abiola-Edewor, who said the situation was a global challenge to
deposit insurance system, commended the collaboration by the judges
of the Federal High Court and the National Judicial Institute in
the last nine years that 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.

While describing judgments against the corporation for
liabilities of failed banks under liquidation as another challenge
confronting the corporation, she 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.

She said 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.

Nigeria Deposit Insurance Corporation (NDIC) on Friday revealed
that a limited understanding and the widespread misconception of
the Deposit Insurance System (DIS) in Nigeria was largely
responsible for the pool of unclaimed deposits following bank
closures.

Executive Director (Corporate Services) of NDIC, Mrs Omolola
Abiola-Edewor, made this disclosure on Friday while delivering an
address at the opening ceremony of the 2020 Sensitisation Seminar
for Judges of the Federal High Court in Abuja with the theme: The
Challenges to Deposit Insurance Law and Practice in Nigeria.

In a statement issued by Director, Communication & Public
Affairs Department, Bashir A. Nuhu, Abiola-Edewor explained the
phenomenon had informed the 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.

Abiola-Edewor, who said the situation was a global challenge to
deposit insurance system, commended the collaboration by the judges
of the Federal High Court and the National Judicial Institute in
the last nine years that 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.

While describing judgments against the corporation for
liabilities of failed banks under liquidation as another challenge
confronting the corporation, she 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.

She said 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.