Judiciary’s Role in Economic Growth: CJN Kekere-Ekun and UBA’s Alawuba Emphasize Need for Effective Judicial System
Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun, stressed the strategic importance of judicial predictability in promoting economic growth.
Speaking at the opening of the 23rd National Seminar on Banking and Allied Matters for Judges, in Abuja, Kekere-Ekun 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.” This highlights the crucial role the judiciary plays in ensuring a stable and thriving economy.
Justice Kekere-Ekun urged members of the bench to constantly update their knowledge in emerging fields of financial regulation and digital commerce. She emphasized that courts must possess the capacity to interpret complex transactions and assess novel financial arrangements within the framework of existing laws. This will enable the judiciary to effectively handle the increasingly complex financial landscape.
Administrator of the National Judicial Institute, Hon. Justice Salisu Abdullahi, linked judicial efficiency to national development, saying a competent and independent judiciary is fundamental to investor confidence and economic stability. He emphasized that a judiciary that is both competent and fiercely independent doesn’t just resolve disputes; it actively underwrites economic growth.
Justice Abdullahi further stated that a competent judiciary creates the fertile ground where capital feels safe to land, innovation can flourish, and businesses can thrive. This underscores the importance of an effective and efficient judicial system in promoting economic growth and development.
Group Managing Director/Chief Executive, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba, raised concerns over the Non-performing Loan (NPL) portfolio in the banking sector, valued at N1.57 trillion, describing it as a symptom of deeper institutional weaknesses that need to be tackled. He emphasized that without a functional and efficient judicial system, credit disbursement to the real sector would be further hampered.
Alawuba stated that the country’s financial system was exposed to systemic risk due to the judiciary’s current limitations in handling commercial and financial disputes. He highlighted the huge volume of bad loans in the industry, emphasizing that banks would struggle to extend credit with confidence without a strong, efficient judiciary.
The UBA CEO called for urgent reforms to enhance judicial performance in financial matters, including digitization 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. He stressed that the banking industry’s success was tied to the effectiveness of the courts.
Alawuba emphasized that no economy can flourish without the enabling guardrails of justice, adding that from credit systems to contract enforcement, the banking industry depends daily on the efficiency, fairness, and predictability of judicial processes. He noted that prolonged litigation and enforcement bottlenecks impede credit access, raise the cost of capital, and limit the capacity of banks to support SMEs and job creation.
Professor Pius Olanrewaju, President/Chairman of Council, CIBN, said trust and security remained central pillars of banking, maintaining that the role of the judiciary cannot be separated from the stability of the banking system. He emphasized that trust is the lifeblood of banking, and security its bedrock, adding that every financial transaction hinges on the assurance that rights will be upheld, obligations fulfilled, and injustices addressed.
