The Governor of the Central Bank of Nigeria, CBN, Mr Olayemi Cardoso has said that an efficient judicial system may affect Foreign Direct Investment, FDI, into the country.
Cardoso said this at the 22nd National Seminar on Banking and Allied Matters for Judges organised by the Chartered Institute of Bankers of Nigeria, CIBN, in collaboration with the National Judicial Institute, NJI, held in Abuja.
The CBN governor, represented by the Director, Legal Services of CBN, Mr Kofo Salam-Alada, said that investors were more willing to invest in jurisdictions which had efficient court systems that foster effective and timely adjudication of commercial disputes.
Cardoso said that such FDI reduces pressure on the foreign reserves; mitigate inflation and makes exchange rate less volatile, thereby enhancing monetary and price stability.
“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.”
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 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.