•Bankers demand specialized financial courts to fast-track disputes
Nigerian bankers, yesterday, in Abuja told judges that delays in judicial processes are impeding the financial sector’s ability to support job creation, small businesses and the recovery of over N1.5 trillion in bad loans.

They called for urgent reforms to strengthen the judiciary’s role in economic growth and restore trust in the financial system.

Speaking at the 23rd National Seminar on Banking and Allied Matters for Judges, the stakeholders told the Nigerian judiciary to emulate countries like Rwanda and the United Kingdom where a speedy and seamless justice system is making the society better.

Chairman of the Body of Banks’ CEOs, Dr Oliver Alawuba, said the Nigerian banking industry could not thrive without a responsive and predictable legal system.

He noted that judicial inefficiencies, overlapping jurisdictions and weak enforcement of financial contracts are increasing the risks associated with lending.

“No economy can flourish without the enabling guardrails of justice. From credit systems to contract enforcement and financial crime prosecution, banks depend daily on the fairness and speed of our courts,” he said

He cited a recent report showing that non-performing loans (NPLs) in the banking sector had risen to N1.57 trillion as of the first quarter of 2025.

According to him, prolonged litigation and enforcement bottlenecks discourage banks from extending credit to the private sector, especially small and medium-sized enterprises (SMEs), thereby stifling economic growth and job creation.

The seminar, organised by the Chartered Institute of Bankers of Nigeria (CIBN) and the National Judicial Institute (NJI), brought together senior judges, regulators and financial sector leaders.

Alawuba drew attention to reforms in countries like Rwanda, Singapore and the United Kingdom, where judicial innovations have helped to increase investors’ confidence and boost financial inclusion.

Rwanda, he said, has achieved significant improvements in dispute resolution through commercial courts and digital case management systems.

Singapore’s Financial Disputes Resolution Scheme and its dedicated financial courts have shortened case timelines and attracted international investors, he added.

Alawuba suggested that Nigeria could benefit from adopting similar reforms, including digitisation of court processes, streamlined case handling and the creation of specialised financial tribunals.

He called for a harmonised legal framework for financial dispute resolution and greater collaboration between banks, the judiciary and law enforcement agencies.

“There must be institutional trust between the judiciary and the banking sector. Without an efficient judiciary, banks will struggle to lend confidently. And without a strong financial system, even the judiciary’s infrastructure cannot be sustainably financed,” he said.

CIBN President, Prof. Pius Deji Olanrewaju, emphasised the judiciary’s critical role in sustaining a sound financial system.

He warned that legal uncertainty and poor enforcement of judgments could undermine public confidence and reduce the flow of capital into the economy.

“Trust is the lifeblood of banking, and security is its bedrock. Every financial transaction, from deposits to loans, hinges on the assurance that rights will be upheld and obligations enforced,” he said.

Olanrewaju called for the establishment of specialised financial courts to fast-track commercial disputes and reduce the burden on general courts.

He also urged enhanced judicial capacity in emerging areas such as cybercrime, digital banking and financial technology, which are rapidly transforming the banking landscape.

The bank chief noted several ongoing challenges affecting the financial sector, including arbitrary issuance of post-no debit (PND) orders by law enforcement agencies, improper use of garnishee orders and the continued issuance of bankers’ orders by magistrate courts in violation of precedent.

The CIBN disclosed that it had resolved 49 out of 74 financial disputes in 2024 through its ethical and alternative dispute mechanisms, with awards totalling N538.5 million.