November 16, 2020 / 12.00PM / CIBN / Header Image: CIBN
Banking and Judiciary stakeholders have jointly insisted that the administration of Justice must use technology to guard against the adverse effects of COVID-19.
Speaking at the 20th edition of the National Seminar on Banking and Allied Matters for Judges, organized by the Chartered Institute of Bankers of Nigeria (CIBN), in collaboration with the National Judicial Institute, NJI, under the auspices of the Bankers Committee Mr, Godwin Emefiele, Governor Central Bank of Nigeria, and Mr. Bayo Olugbemi, President/Chairman of Council, CIBN noted that the emergence of the COVID-19 pandemic and compliance with social distancing precautions have resulted in the adoption of technology to facilitate mass communication and business processes in the country.
In his presentation, the CBN Governor who was represented by the Deputy Governor of the CBN, Aisha Ahmad, said that the COVID-19 pandemic has unraveled as a global health and economic crisis of seismic proportions. According to Emefiele "Domestic and international travel and global trade value chains have been severely disrupted with significant negative impact on financial markets, financial services industry, oil & gas, health, transport & aviation, education, hospitality & tourism, to mention just a few. Individuals, families, businesses, industries, economies, countries - all have had to adapt to a new normal, even as global coronavirus cases continue to rise above 50 million."
He stated that "the effects of the pandemic, particularly the crash in international oil prices, disruption in trade value chains and muted business activities during the lockdowns have severely impacted economic output and heightened domestic macroeconomic vulnerabilities with GDP growth for Q2 2020 contracting by 6.10%; compared to 1.87% growth in Q1, 2020, a decline of -7.9%."
Further, the regulatory bank Governor noted that "the Nigerian financial services sector continues to be resilient, with positive financial soundness indicators evidenced by strong capital adequacy, liquidity and asset quality metrics. Most importantly, banks and other financial institutions (OFIs) sustained the credit growth momentum, channeling significant amount of lending (over N3.7 trillion) to the real sector- manufacturing, consumer, agriculture, etc. The banking and payments system also retained its operational resilience, maintaining availability of electronic payment and mobile banking channels. For instance, electronic transaction volumes increased by about 67% during the lock down with increased transactions at agent networks, whilst the payment system infrastructure accommodated the surge as more citizens moved to electronic channels."
To facilitate speedier trials in the new normal, Emefiele spelt out the critical steps the judiciary should undertake as a matter of urgency:
In his address, Mr. Bayo Olugbemi, President/Chairman of Council, CIBN noted that the banking sector had not been left out of the COVID-19 disruption and the banking industry and the sector had embraced the innovations that had accompanied what is known as the "New Normal". With the option of working from home now more of a reality than ever, banks and other financial institutions have further leveraged on technological advancements to improve the efficiency of services, operations, compliance, and regulations
Mr. Olugbemi warned over five hundred participants who connected to the programme through two digital meeting platforms of the growing danger arising from the use of the judicial system by recalcitrant debtors to avoid contractual obligations. He used a scenario where a bank customer after obtaining credit facilities sourced from depositors' funds rushes to court in order to seek the court's assistance to avoid his obligation to repay the loan and obtains interim or final restraining orders against the bank with confidence that the judicial process which may take up to a decade to be exhausted does not bode well for the financial services industry.
He said that "the courts can support economic growth in the country and discourage this unsavoury practice by ensuring that, once it is established that a loan was disbursed to a customer who is seeking protective reliefs, the payment of the money advanced should be deposited with the court as a minimum pre-requisite to commencing litigation or obtaining such orders against the lender'.
Participants at the seminar invluded: Hon. Dr. Justice Ibrahim Tanko Muhammad, CFR, FNJI, Chief Justice of Nigeria and Chairman, Board of Governors, National Judicial Institute, Mr. Horacio Bernardes Neto, President, International Bar Association and Mr. Olumide Akpata, President, Nigerian Bar Association; Justice R.P.I Bozimo, Administrator, National Judicial institute, the Attorney-General of Lagos State, Moyosore Onigbanjo, represented by his Senior Special Assistant, Mrs Mujibat Oshodi, Mr. 'Laoye Jaiyeola, FCIB, Past President, CIBN/Chief Executive Officer, the Nigerian Economic Summit Group; Professor Akin Oyebode, MON, SAN, Professor of International Law and Jurisprudence, University of Lagos; Professor Fabian Ajogwu, SAN, FCIArb, Principal, Kenna Partners & Professor of Business Law, Lagos Business School; Dr. Cosmos Maduka, CO, Founder/CEO, Coscharis Group; Mr. Bello Hassan, Director, Banking Supervision, Central Bank of Nigeria; Mr. Babatunde Irukera, Chief Executive, Federal Competition and Consumer Protection Commission; Mr. Kemi Pinheiro, SAN, FCIArb, FloD; Principal Partner, Pinheiro LP/Chairman, Nigeria Wire and Cable Plc; Mr. Kelly Mogbo, Company Secretary & Legal Adviser, Nigeria Mortgage Refinance Co and Mr. Olofinsola, Partner, Human Capital Consulting, West Africa Deloitte & Touche; were the other Speakers at the event.