President of the National Industrial Court of Nigeria, Justice Benedict Kanyip, has emphasised the need for the Nigeria Deposit Insurance Corporation to prioritise the settlement of depositors of failed banks.
Kanyip made the call on Friday while delivering a keynote address at the sensitisation seminar organised by the National Judicial Institute in collaboration with the Nigeria Deposit Insurance Corporation, with the theme “Enhancing the Efficiency of Bank Liquidation and Depositor Protection”.
He called for a faster judicial resolution of failed bank cases, insisting that efficient liquidation processes and strict enforcement of depositor protection laws are critical to sustaining public confidence in Nigeria’s banking sector.
The jurist said the legal framework established under the NDIC Act 2023 and the Banks and Other Financial Institutions Act 2020 places deposit liabilities above every other financial obligation of failed banks, overriding the general provisions of the Companies and Allied Matters Act.
According to Kanyip, while Section 654 of CAMA prioritises taxes, pension deductions, employee salaries and accrued entitlements during winding-up proceedings, the NDIC Act specifically elevates deposit liabilities above all other claims.
