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By Lukman Olabiyi
The Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, has warned against the exploitation of judicial and regulatory processes in bank liquidation and financial disputes, stressing that such actions could undermine public confidence in Nigeria’s financial system and trigger economic instability.
Justice Tsoho gave the warning during the 2026 sensitisation seminar organised by the National Judicial Institute in collaboration with the Nigeria Deposit Insurance Corporation (NDIC) for judges of the Federal High Court in Lagos.
Speaking on the theme “Enhancing the efficacy of bank liquidation and depositors’ protection”, the Chief Judge said the increasing complexity of banking transactions, financial regulation and emerging digital tools had placed greater responsibility on the judiciary in handling financial sector disputes.
According to him, disputes arising from interim reliefs, garnishee proceedings, competing claims over liquidation assets and challenges to regulatory powers often require urgency, judicial restraint and careful balancing of competing interests.
“The Federal High Court is frequently tasked with reconciling these competing interests while ensuring that both judicial and regulatory processes are not exploited in ways that undermine statutory objectives, the financial system, or the duty of fairness,” he said.
Justice Tsoho noted that the effectiveness of legal and institutional responses to bank liquidation proceedings remained closely tied to public trust in financial institutions and the stability of the banking system.
He warned that uncertainty, delays and inconsistencies in adjudicatory and regulatory processes could erode confidence in both the judiciary and the financial sector.
“When disputes are resolved with clarity, fairness, and efficiency, the integrity of the system is reinforced. The role of the Federal High Court, therefore, remains central and consequential,” he stated.
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The chief judge observed that the court’s decisions in insolvency, liquidation proceedings, regulatory actions and financial oversight matters often shape the practical functioning of financial regulation and public perception of accountability within the banking sector.
He stressed that bank liquidation matters should not be treated as routine commercial disputes because they directly affect depositors, creditors, investors, employees and regulatory agencies.
“The need for consistency, clarity, and procedural discipline in handling such matters cannot be overstated,” he added.
In his welcome address, NJI administrator Justice Babatunde Adejumo said the seminar, themed “Enhancing the efficacy of bank liquidation and depositors’ protection”, focused on strengthening judicial understanding of bank liquidation proceedings and depositor protection within Nigeria’s financial system.
Justice Adejumo stressed the importance of a stable and credible judiciary in sustaining confidence in Nigeria’s financial and banking sectors, noting that the Court of Appeal plays a pivotal role in shaping banking and financial jurisprudence.
He explained that bank liquidation matters often involve complex legal and regulatory questions requiring careful judicial interpretation.
In her remarks, delivered on behalf of the Managing Director and Chief Executive Officer of the NDIC, Emily Osuji, the Executive Director, Corporate Services, said the seminar was organised to deepen collaboration between the judiciary and the NDIC.
She noted that the seminar underscored the judiciary’s responsibility in safeguarding public confidence in the nation’s financial system through fairness, transparency and integrity in the administration of justice.
