Amid a troubling N1.57 trillion non-performing loan crisis, the chairman of the Nigerian banks’ chief executives, Oliver Alawuba, has sought the collaboration of the judiciary to tackle the challenges head-on.
Alawuba, who is also the Group Managing Director of UBA Plc, sought the collaboration at the 23rd National Seminar on Banking and Allied Matters for Judges, on Tuesday at the National Judicial Institute (NJI) in Abuja, where both sectors underscored that meaningful judicial reforms are essential to restoring confidence in credit delivery and driving sustainable economic growth.
While calling for stronger collaboration between financial institutions and the judiciary to resolve systemic issues hindering credit delivery, he noted, “No economy can flourish without the enabling guardrails of justice”, as he identified judicial inefficiencies as a key contributor to the N1.57 trillion burden of non-performing loans.
“Our partnership is not one of convenience, but of necessity. Without a strong, efficient judiciary, banks will struggle to extend credit with confidence”, he stated.
Alawuba reiterated that the N1.57 trillion in bad loans is not merely a banking issue but a national concern rooted in enforceability gaps and legal uncertainty.
He noted that the country, more than before, needs a vibrant judiciary, especially in this era of reform and resilience, as the Nigerian economy is undergoing bold transformations involving fiscal consolidation, monetary tightening, and market reforms that are laying the groundwork for long-term stability.
“But for these efforts to succeed, they must be underpinned by strong institutions – none more important than the judiciary. From the credit system to contract enforcement, from insolvency resolution to financial crime prosecution, the banking industry depends daily on the efficiency, fairness, and predictability of our judicial processes. Trust in financial institutions grows when parties know that justice is accessible, enforceable, and timely”.
Quoting from the World Bank’s Doing Business Report, Alawuba said the Bretton Woods institution consistently shows that economies with faster and more reliable judicial processes attract more investment, deepen financial inclusion, and foster innovation.
Hence, he proposed sweeping reforms, including digitisation of court processes, continuous judicial capacity building, and the establishment of specialised financial courts to fast-track dispute resolution and protect the financial system from systemic risks.
He cited other countries where the judiciary has been supportive of the banking sector, asking Nigeria’s legal officers to take a cue from them.
“Rwanda, for example, instituted commercial courts with simplified procedures, resulting in significant improvements in loan recovery and business confidence. Rwanda’s Integrated Electronic Case Management System has drastically reduced case backlogs, with commercial disputes resolved 60 per cent faster since its introduction”, wondering if Nigeria can leverage technology to enhance judicial efficiency in financial matters.
He also cited Singapore’s Financial Disputes Resolution Scheme, which provides an independent, non-litigious pathway for resolving bank-customer disputes swiftly, enhancing both financial literacy and inclusion.
“Singapore’s ascent as a global financial hub was propelled by its Singapore International Commercial Court (SICC), which specializes in complex financial disputes. By incorporating international judges and adopting streamlined procedures, Singapore reduced case resolution time from years to months, attracting foreign investment”, stating that Nigeria can also Nigeria adapt similar specialized courts for banking and financial disputes.
Also is the UK’s Financial List, a dedicated court for high-value financial cases, which combines judicial expertise with industry knowledge, ensuring rulings that align with market realities.
Alawuba said this has reinforced London’s position as a global financial centre, a model which he said Nigeria should consider.
The two-day seminar, themed “Justice and Finance in Partnership: Enabling Trust, Security and Nigeria’s Economic Growth and Development,” was jointly organised by the Chartered Institute of Bankers of Nigeria (CIBN) and the NJI, bringing together an influential mix of judges, justices, regulators, bank executives, and legal scholars to chart a new course for Nigeria’s economic and judicial interface.
Chief Justice of Nigeria (CJI), Hon. Justice Kudirat Kekere-Ekun, reinforced the judiciary’s economic significance, stating “Judicial predictability is not just a legal virtue – it is an economic asset. It enhances market efficiency, lowers risk premiums, and unlocks capital for infrastructure and business development,” she said.
“This partnership between the judicial and finance sectors must go beyond courtroom litigation. It must encompass shared responsibility for strengthening the rule of law in commercial activities”.
Justice Kekere-Ekun underscored the judiciary’s vital role in supporting economic development through legal clarity and efficiency, stressing the need for courts to evolve with the changing financial landscape.
She emphasized that judicial systems must be responsive and supportive of economic activities, noting, “Updating legal frameworks to keep pace with innovation; promoting mechanisms for alternative dispute resolution; and ensuring our judicial processes do not become a bottleneck to legitimate business activity” are key to sustaining investor confidence and fostering growth.
The CJN further highlighted the National Judicial Institute’s (NJI) ongoing role in equipping judicial officers to navigate emerging legal challenges in finance and technology. “The National Judicial Institute, through initiatives such as this Seminar, continues to play a pivotal role in preparing judicial officers to meet these challenges,” she stated.
She also praised the Chartered Institute of Bankers of Nigeria (CIBN) for its strategic vision and consistent engagement with the judiciary. “I commend the CIBN for its sustained collaboration and foresight in promoting judicial-financial dialogue,” she added, affirming that such partnerships are crucial to building a justice system that supports financial innovation and economic stability.
CIBN President and Chairman of Council, Prof. Pius Olanrewaju, tied the theme of the event to foundational principles of finance. “Trust is the lifeblood of banking, and security its bedrock. Every financial transaction, from deposits to loans, hinges on the assurance that rights will be upheld, obligations fulfilled, and injustices addressed,” he noted.
Similarly, NJI Administrator, Justice Salisu Abdullahi, described the judiciary’s economic influence as far-reaching. “A judiciary that is both competent and fiercely independent doesn’t just resolve disputes; it actively underwrites economic growth. It creates the fertile ground where capital feels safe to land, innovation can flourish, and businesses can thrive.”
A robust financial system cannot thrive without an equally capable and independent Judiciary. Justice Salisu Abdullahi noted, “the partnership between the Judiciary and the financial sector is not merely a theoretical concept, but a practical imperative.” When financial disputes arise or regulatory frameworks are tested, the Judiciary plays a central role in ensuring justice is delivered with fairness, precision, and a deep understanding of the intersection between law and economics.
He added that attracting investment into Nigeria is a collective responsibility that extends beyond the Executive arm of government. As emphasised, “investors, whether local or international, are seeking predictability, fairness, and the assurance that their investments are secure under the Rule of Law.” It is therefore imperative that the Judiciary not only delivers sound judgments but also actively embodies and communicates its role in safeguarding economic rights. Through initiatives such as this Seminar, judicial officers are better equipped to handle complex financial cases and foster the legal stability investors need.
“I urge Your Lordships to fully engage in these sessions, as the insights gained will enhance your capacity to support economic progress through principled adjudication,” Abdullahi stated.
Beyond diagnosis, the seminar outlined several concrete interventions including promoting alternative dispute resolution (ADR), harmonising financial laws, accelerating case adjudication, and introducing judicial technology tools to reduce backlogs. The increasing menace of cybercrime and digital fraud was also addressed, with a consensus on empowering courts to adjudicate such cases with agility and precision.
As the seminar concluded, stakeholders reaffirmed a joint commitment to repair the weak links between justice and finance. The unprecedented alignment between the banking and judicial sectors signals a critical step toward unlocking capital, boosting investor confidence, and propelling sustainable economic growth in Nigeria.
Comments are closed.