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.