The Group Managing Director of United Bank for Africa Plc, Oliver Alawuba, says judicial delays and other processes are worsening the financial risk profile of Nigeria’s banking sector.

Alawuba stated this at the 23rd National Seminar on Banking and Allied Matters for Judges, held at the National Judicial Institute in Abuja.

The two-day event was jointly organised by the Chartered Institute of Bankers of Nigeria and the National Judicial Institute (NJI).

Speaking on the theme, ‘Justice and Finance in Partnership: Enabling Trust, Security and Nigeria’s Economic Growth’, Alawuba, who also serves as chairman of the Body of Bank Chief Executive Officers, stressed the need for greater synergy between the judiciary and the financial services sector.

He said, “In Nigeria, however, judicial delays, overlapping jurisdictions, and enforcement challenges continue to increase the risk profile of financial transactions.”

Alawuba cited data published in April 2025 showing that non-performing loans in the Nigerian banking sector had risen to over N1.57 trillion, partly due to sluggish legal processes in contract enforcement and debt recovery.

“Prolonged litigation and enforcement bottlenecks are not mere technicalities – they impede credit access, raise the cost of capital, and limit the capacity of banks to support SMEs and job creation,” he added.

He explained that the effectiveness of Nigeria’s financial system depends largely on a fair, efficient and predictable judiciary, adding that the current state of delays contributes to the rising level of non-performing loans in the industry.

He stated, “No economy can flourish without the enabling guardrails of justice – an impartial judiciary, rule of law, and a predictable legal environment that inspires trust.”

Alawuba called for urgent reforms, including the digitisation of judicial processes, the establishment of specialised financial courts, and harmonised legal frameworks across jurisdictions.