At NBA Lagos Dinner, Bank Chief Seeks Judicial Reforms to End Delays
Precious Ugwuzor
Delays in adjudication of commercial cases have made the courts a haven for chronic debtors, Managing Director/Chief Executive Officer of Polaris Bank, Adekunle Sonola, has said.
The inefficient system, he noted, also boosts impunity rather than the courts serving as a deterrent to criminality.
“The weaknesses of the legal/judicial system encourage illicit economic activities. There is a strong correlation between illicit economic activities and the effectiveness of the legal system across countries,” Sonola said.
The Polaris Bank chief delivered the lecture at the 2023 annual dinner of the Nigerian Bar Association (NBA) Lagos Branch, which was held at the weekend.
The theme was: “Favourable investment and business environment through legal policy and reforms.”
He noted that even when a protracted case is eventually decided, the value of the recovered debt would have depreciated massively.
The consequence, according to him, is that the economy suffers, with many investors afraid of entering into contracts because their rights are not adequately protected and contracts are not effectively enforced.
“There is a general disregard for contract terms which makes the economy less investible.
“Many Nigerians reject direct investments when they will not be actively involved in operations and management, as contracts cannot be timely enforced.
“This makes capital inaccessible, and the economy suffers for it,” Sonola said.
Sonola said banks’ inability to effectively use the legal system to get loan defaulters to honour their obligations increases their ‘cost of risk’, which is in turn reflected in loan pricing.
“An effective legal system must be designed to prevent opportunistic loan defaulters from exploiting vulnerabilities within the system,” he said.
He, therefore, stressed the need to restore faith in the legal system.
“The public confidence in the legal system must be rebuilt. This will positively impact businesses and investment.
“Timely and efficient delivery of justice is imperative for fostering a conducive business environment and instilling confidence in legal processes,” Sonola said.
He called for specialised courts or commercial tribunals with powers to determine commercial disputes faster.
Alternative Dispute Resolution (ADR) mechanisms, he said, must be a critical part of the system, while court processes should be digitalised.
The legal system, Sonola believes, must be end-to-end automated as much as practicable and be accessible to all. At the same time, reforms must keep up with the dynamic economic and social environment.
To him, the importance and criticality of an efficient legal system to businesses, investment and overall economic well-being have not enjoyed proportional public discourse attention, which must change.
He advised: “Ensure the adequate number of judges with equally adequate remuneration. Continuously review court rules to strengthen process efficiency.
“Lawyers are critical agents of reformation. They must prioritise justice delivery above playing the legal system.
Reformation will require support from the Ministry of Justice and the National Judicial Council.
“Government, at all levels, must show commitment and provide the necessary funding.”
Aside from legal challenges, Sonola said the business environment is also dealing with rising inflation that has hit 27.3 per cent, high interest rates, foreign exchange illiquidity and volatility, high energy costs which have more than doubled, weak infrastructure base, insecurity, rising risk profile, declining purchasing power, among others.
NBA Lagos Branch chairman Olabisi Makanjuola noted that the economy would thrive best if the judiciary is more efficient.
He said the association would continue to engage with the Bench towards improving the system and strengthening the Bar’s relationship with it.
Makanjuola, a partner at Olaniwun Ajayi LP, highlighted his administration’s achievements in the past six months in court monitoring, international secondment, continuing legal education, branch building project, member welfare, and Bar and Bench relationships, among others.
Chairman of the Dinner Committee, Adeleke Alex-Adedipe, who welcomed participants in his remarks, said the event was an opportunity for lawyers to unwind after many months of hard work.
He urged young lawyers to be active in their various branches. “Let me use this opportunity to encourage young lawyers to play an active role in their respective branches because there are many opportunities available,” he advised.
Awards of judicial excellence and individual recognitions were presented to distinguished jurists, including retired Supreme Court Justice Amina Augie, former Chief Judge of Lagos State Opeyemi Oke; as well as Justices Serifat Sonaike, Babatunde Kalaro, Matthias Dawodu, Ayodeji Oresanya.
Mrs Funke Adekoya (SAN) was recognised as an inspiring icon.
Twelve members elevated to the Inner Bar as Senior Advocates of Nigeria were honoured. They are Folashade Alli, Bomo Agbebi, Babaseyi Joseph, Kehinde Aina, Abiodun Olaleru, Bamidele Ibironke, Oluwaseyilayo Ojo, Tochukwu Onyiuke, Yemi Adesina, Omoyemi Akangbe, Onyemaechi Adiukwu and Olayemi Badewole.
Akangbe, a former chairman of the branch, was also honoured for exceptional service to the Bar, while another former chairman Chukwuka Ikwuazom (SAN) and former Assistant Secretary Oyinkasola Badejo-Okusanya were honoured for exceptional service to the Branch Immediate-past chairman of the Branch, Ikechukwu Uwanna, now Abia State Attorney-General and Commissioner for Justice, and his Lagos counterpart Lawal Pedro (SAN) received individual recognitions.
The night of fun, with Comedienne Kiki as compere, featured music performances and prizes for best-dressed lawyers.
