The Group Managing Director/Chief Executive Officer of United Bank for Africa (UBA) Plc and, Mr. Oliver Alawuba, has said that over N1.57 trillion non-performing loans in the banking sector “remain a symptom of deeper institutional weakness” that needs to be addressed.

Alawuba, who is also the Chairman of the Body of Bank CEOs, said that the country’s financial system has been exposed to systemic risk due to the judiciary’s current limitations in handling commercial and financial disputes.

He warned that the country’s banking sector may be unable to confidently extend credit without a functional and efficient judicial system, adding that non-performing loans continue to rise amid judicial delays and enforcement bottlenecks.

Speaking during the opening ceremony of the 23rd National Seminar on Banking and Allied Matters for Judges, jointly organised by the Chartered Institute of Bankers of Nigeria (CIBN) and the National Judicial Institute (NJI), held in Abuja on Wednesday, Alawuba emphasised that the banking industry’s success is tied to the effectiveness of the courts.

According to him, “Without a strong, efficient judiciary, banks will struggle to extend credit with confidence. Our partnership is not one of convenience, but of necessity.”

He called for urgent reforms to enhance judicial performance in financial matters, including digitisation of court processes, investment in judicial capacity building, and the establishment of specialized financial courts to handle complex cases involving fraud, cybercrime, and contract enforcement.

The UBA CEO said, “No economy can flourish without the enabling guardrails of justice. From credit systems to contract enforcement, the banking industry depends daily on the efficiency, fairness, and predictability of our judicial processes.”

Alawuba asserted that the courts must evolve to meet the demands of a rapidly transforming financial landscape, especially as digital platforms, fintech innovation, and cybercrimes become more entrenched in Nigeria’s financial ecosystem.

Also speaking at the seminar, the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, pointed out the strategic importance of judicial predictability in promoting economic growth.

She said, “Judicial predictability is not just a legal virtue – it is an economic asset. It enhances market efficiency, lowers risk premiums, and unlocks capital for infrastructure and business development.”

Justice Kudirat urged members of the bench to constantly update their knowledge in emerging fields of financial regulation and digital commerce.

She added that, “Our courts must possess the capacity to interpret complex transactions and assess novel financial arrangements within the framework of existing laws.”

President and Chairman of the Council, Chartered Institute of Bankers of Nigeria, Professor Pius Olanrewaju, in an address described trust and security as central pillars of banking, stressing that the role of the judiciary cannot be separated from the stability of the banking system.

He emphasised that courts must inspire confidence in the resolution of financial disputes and protect the sanctity of contracts, as failure to do so could undermine investor confidence and hinder the nation’s economic growth.

Olanrewaju said, “Trust is the lifeblood of banking, and security its bedrock. Every financial transaction, from deposits to loans, hinges on the assurance that rights will be upheld, obligations fulfilled, and injustices addressed.”