Judicial Delays in Banking Cases Threaten Public Confidence – Chief Judge

The Chief Judge of the Federal High Court, Justice John Tsoho, has warned that delays and inconsistencies in the resolution of bank disputes could undermine public trust in the country’s financial system and trigger wider economic consequences.

He gave the warning on Wednesday at the opening session of a seminar for Federal High Court judges organised by the National Judicial Institute (NJI) in collaboration with the Nigeria Deposit Insurance Corporation (NDIC) in Lagos.

Justice Tsoho was represented at the seminar, titled: “Enhancing the Efficacy of Bank Liquidation and Depositors’ Protection,” by the Administrative Judge of the Lagos Division of the Court, Justice Ayokunle Faji.

The chief judge said that ongoing uncertainties in bank liquidation processes are weakening confidence in both judicial and regulatory authorities and may threaten economic stability.

He explained that when adjudicatory and regulatory processes are uncertain, lengthy, or inconsistent, they erode trust in both systems and could ultimately contribute to economic instability.

Justice Tsoho noted that the increasing complexity of banking transactions, changes in financial regulations, and the rise of digital financial tools have introduced new challenges for the judiciary.

He pointed out that issues such as interim reliefs, garnishee proceedings, competing claims over liquidation assets, and challenges to regulatory powers often require urgent and balanced judicial intervention.

On depositor protection, the chief judge said public confidence depends on assurances that adequate safeguards are in place to protect depositors during institutional distress.

He explained that the seminar was organised to promote practical discussions on issues including garnishee proceedings in liquidation estates, public-interest considerations, and the handling of urgent financial applications.

In his welcome address, the managing director and chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Sunday, said the bank liquidation process remains complex, as insiders sometimes conceal or deplete assets before closure.

Sunday, who was represented by the executive director, Corporate Services, Mrs. Chidinma Osuji, also noted that bank liquidation often results in complex legal disputes involving creditor hierarchy, enforcement of claims, asset realisation, and contractual obligations arising from winding-up proceedings.

He expressed optimism that improved understanding between regulators and judges would help reduce delays, minimise conflicting rulings, and strengthen public confidence in Nigeria’s banking system.

Also speaking, the Administrator of the National Judicial Institute (NJI), Justice Babatunde Adejumo, expressed concern over declining public confidence in the judiciary and urged judicial officers to uphold integrity and protect the institution from external interference.

He urged judges to remain committed to their oath of office and uphold the sanctity of the judiciary.

“We should be bold enough to keep our oath of office and stand by the integrity and sanctity of the Nigerian judiciary,” he said.

He also cautioned against attempts by the executive arm of government to interfere in judicial affairs, warning that such actions could have damaging consequences.

“We should not allow the executive to erode into our platform by trying to organise the Nigerian judiciary. That would cause calamities for everybody,” he said.

The former president of the National Industrial Court of Nigeria stressed that the judiciary must take responsibility for reforming itself and preserving its independence.