CBN Gov. advocates for efficient judiciary to boost foreign investment
By Sodiq Adelakun
In an event on Monday, the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso highlighted the critical role of an efficient judicial system in attracting Foreign Direct Investment (FDI) to the country.
Speaking at the 22nd National Seminar on Banking and Allied Matters for Judges, which was a collaborative effort between the Chartered Institute of Bankers of Nigeria (CIBN) and the National Judicial Institute (NJI), Cardoso emphasised the importance of a competent court system for the economic growth of Nigeria.
The CBN Governor, who was represented by Mr. Kofo Salam-Alada, the Director of Legal Services at CBN, pointed out that investors show a preference for economies where commercial disputes are resolved effectively and swiftly.
According to Cardoso, the presence of such a judicial environment not only attracts foreign capital but also contributes to the reduction of pressure on the nation’s foreign reserves. Furthermore, he mentioned that it helps in mitigating inflation and stabilising the exchange rate, which ultimately leads to enhanced monetary and price stability.
The seminar, which brought together legal and financial experts, aimed to foster a deeper understanding among judges regarding the complexities of the banking sector and its regulatory environment. By doing so, the CBN and CIBN hope to create a more conducive atmosphere for FDI, which is essential for Nigeria’s economic development.
“The judiciary contributes to the effectiveness of monetary policy, financial system stability, economic growth and development through their interpretation of statutes.
“Sometimes, giving effect to the acts of the government and its agencies, where such statutes and acts relate to monetary policy, financial system stability, growth and development.
“Because judicial decisions are capable of significantly impacting the economy, it is necessary that economic reasoning is exhibited in judicial decision-making,” he said.
The President of the CIBN, Dr Ken Opara, said the seminar was to bring stakeholders in banking and judiciary together to forge a common position on knotty legal issues which had implications on the banking industry.
Opara highlighted some issues facing the financial services industry to include issuance of bankers orders by magistrate courts, EFCC’s Post No Debit Order, inappropriate deployment of garnishee, among others.
He re-emphasised the need for the creation of a specialised court to exclusively deal with commercial and financial cases as opposed to having divisions within the existing court structure.
On cybercrime, he said that the financial sector was susceptible to cyber-attacks.
Opara said that new types of attacks were introduced, hence the need to improve capacity building in all sectors of the economy to combat this trend.
“It is our belief that giving special attention to financial and commercial disputes, would go a long way to enriching the financial system in the country,” he said.
The Administrator of the National Judicial Institute (NJI), Justice Salisu Abdullahi, said the seminar would help to educate stakeholders on global best practices to promote a relevant judicial system.
Abdullahi, represented by the Secretary of NJI, Malam Abubakar Maidama, said it would also help to entrench sustainable solutions to the challenges of the banking sector. It was gathered that the seminar was organised by NJI in collaboration with the NJI.
