FinTech: CBN urges Judges on technology adoption for effective service delivery

*The Central Bank of Nigeria says deep understanding of the demonstration of electronic/digital payments system by judges will offer comfort to foreign investors in relation to dispute resolution especially in the financial services sector of the economy

Gbenga Kayode | ConsumerConnect

In line with global best practices, the Central Bank of Nigeria (CBN) has appealed to judges in the country to use technological tools in order to enhance justice delivery, particularly in the evolving financial services sector of the economy.

It was gathered Mr. Godwin Emefiele, Governor of CBN, made the appeal Tuesday, November 23, 2021, at the 21st National Seminar on Banking and Allied Matters for Judges, in Abuja, FCT.

Mr. Godwin Emefiele, Governor of CBN

Represented at the forum by Mr. Kofo Salam-Alada, Director of Legal Services Department of the CBN, Mr. Emefiele said that a deep understanding of the demonstration of electronic/digital payment systems by judges would give comfort to foreign investors knowing that there would be certainty in dispute resolution, should the need arise.

According to him, the CBN is leveraging technology in its regulatory activities by employing regulatory technologies (RegTech), establishing regulatory sandbox and building capacity in all areas.

Emefiele stated: “The entrance of Financial Technology (FinTech) into the banking system world over has made it overly essential for everyone to be abreast of what FinTech brings on board.

“A judicial officer or law enforcement agent who is knowledgeable in relevant emerging innovation is at an advantage to apply the primary assignment.”

The CBN Governor further said: “The reality is that increasingly, the courts will be called upon to adjudicate on complex technologically-driven transactions and relationships.

“As such, a wide understanding of the scope of the law and utilisation of technological innovations by all will ultimately result in the delivery of better output.”

In his remarks on the occasion, Dr. Bayo Olugbemi, President of the Chartered Institute of Bankers of Nigeria (CIBN), said that the subject of innovation in the administration of justice and banking operations had become very topical in recent times.

Olugbemi appealed to judicial officers to pay attention to evasion of legal responsibilities by borrowers who had taken loans sourced from depositors’ funds.

The CIBN Chief said: “It is not surprising that the tendency to evade legal responsibilities which borrowers have freely entered into by taking loans sourced from depositors’ funds have continued unabated.

“What is perhaps surprising is the continued abuse of court processes by some of these delinquent customers to aid their unwholesome objectives.

“Aside the well-known strategy to frustrate debt recovery efforts by employing different tactics to delay court proceedings.”

He noted that “there are now new efforts to convert loans ostensibly obtained for business purposes into foreign currency and exporting them to other countries.”

Speaking at the event, Justice Salisu Abdullahi, Administrator of the National Judicial Institute, said the Judiciary remains an indispensable partner in ensuring stability of the financial system in the country.

Abdullahi said the Judiciary play a critical role in entrenching sustainable solution to the daunting legal challenges, especially in the financial services sector.

“Judges must be imbued with a sense of serenity in addition to having necessary knowledge and skill to ensure efficient and timely disposition of cases which will in turn nurture a conducive environment for business and investment to thrive,’’ said the Justice.

Mr. Olumide Akpata, President of the Nigerian Bar Association (NBA), said that banking relations had been altered by modern technology.

Akpata, therefore, commended the CIBN for the seminar which had been sustained since 21 years.

According to him, the theme was critical in ensuring qualitative justice delivery.

The NBA has signed a Memorandum of Understanding (MoU) with the CIBN to bring lawyers up to speed technogically, said he.

He added: “The landscape is changing and those in charge of dispute resolution should be up to speed.”

Kindly Share This Story