The Central Bank of Nigeria (CBN), has noted that an efficient judicial system can affect foreign direct investment (FDI) into the country.
Yemi Cardoso, governor of the apex bank said this in Abuja on Monday 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).
Cardoso who was represented by Kofo Salam-Alada, director, legal services of CBN, noted investors were more inclined to make investments in jurisdictions with effective judicial systems that support prompt and efficient resolution of business disputes.
Cardoso said such FDI improves monetary and price stability by lowering the strain on foreign reserves and reducing inflation and exchange rate volatility, according to NAN report.
“The judiciary contributes to the effectiveness of monetary policy, financial system stability, economic growth and development through their interpretation of statutes,” he said.
“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.”
On his part, Ken Opara, CIBN president, said the goal of the seminar was to bring together the judiciary and banking sectors to develop a shared stance on complex legal matters that affect the banking sector.
Opara outlined several problems that the financial services sector faces, such as the Economic and Financial Crimes Commission’s (EFCC) post-no-debit order, the issuance of bankers’ orders by magistrate courts, and the improper use of garnishees, among others.
He emphasised the necessity of creating 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 cyberattacks could affect the financial sector.
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.
Salisu Abdullahi, administrator of the National Judicial Institute (NJI), who also spoke at the seminar, said the summit helped to educate stakeholders on global best practices to promote a relevant judicial system.