Public trust critical to Nigeria’s financial stability, economic growth – Oyedele + Video

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has challenged regulators and operators in the nation’s banking sector to strengthen public confidence in the industry, stressing that no economy can thrive without a resilient financial system built on trust.

The minister spoke on Tuesday at the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual Meeting and Workshop in Abuja.

Themed “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” the workshop brought together financial regulators, policymakers and industry experts from across Africa to discuss strategies for strengthening deposit insurance systems and improving crisis preparedness.

Speaking, Oyedele said safeguarding financial stability has become increasingly important as economies confront emerging risks and opportunities.

According to the minister, financial stability goes beyond technical policy discussions, as it directly affects businesses’ access to credit, households’ ability to save securely, investor confidence and government’s capacity to implement development programmes.

He said, “Confidence cannot be legislated, purchased, or imposed; it must be earned through strong institutions, transparency, effective communication, preparedness, and consistent action.

“The stronger our institutions, the greater the confidence they inspire. The greater the confidence, the more resilient our financial system becomes, and the more resilient our financial system, the stronger our economies, and the greater the prosperity we can create for our people.”

Oyedele said the recent banking recapitalisation in the country was to strengthen them and make them more resilient as the global economy confronts various forms of uncertainties.

According to the minister, “A better capitalized banking system is a more resilient one, better able to absorb shocks and sustain lending without recourse to the deposit insurance fund.

“For deposit insurance, the significance is direct. Stronger bank balance sheets mean a stronger financial safety net.

“A financial system credible in the eyes of the world is one in which depositors are more likely to place and keep their confidence.

“Deposit insurance is necessary for inclusive growth. Deposit insurance does not just protect savings; it supports financial inclusion.

“When people trust financial institutions, they save more. When savings increase, banks lend more. When lending expands, businesses invest and jobs are created.”

Mr. Oyedele said Africa’s financial landscape was evolving rapidly with cross-border banking, fintech innovation, and digital payment and more actions were needed to ensure banking stability on the continent.

He urged collaboration among stakeholders saying, “No single institution preserves financial stability alone. Central bank, deposit insurer, supervisors, finance ministry, resolution authorities, and the media each have a role to play, and our coordination must be as seamless as the crisis we prepared for.”

In his address, the Managing Director (MD) of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, declared that the protection of depositors his organisation’s priority.

He said this year’s theme, “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” was timely and highly relevant.

According to him, “Across the globe, deposit insurance systems are having to adapt to a rapidly changing financial environment shaped by digital innovation, fintech developments, artificial intelligence and increasing cross-border financial activities.”

He noted that while these developments presented significant opportunities to expand financial inclusion and improve service delivery, they also create new risks that require proactive, coordinated responses from financial safety-net participants.

Speaking to the theme, the MD said, “Confidence remains the most valuable asset in any financial system. Indeed, trust takes years to build but can be eroded within days if stakeholders perceive uncertainty or instability.

“As deposit insurers, central banks, supervisors, and resolution authorities, our collective responsibility extends beyond establishing protective frameworks; it includes ensuring that the public understands, trusts, and relies on those frameworks during both normal and turbulent times.

“Public awareness is, therefore, an essential pillar of effective deposit insurance systems, and a critical tool for deposit insurers.

“A well-informed depositor is more likely to make rational decisions and less likely to react adversely to rumours, misinformation, during periods of uncertainty.

“Public awareness must therefore be treated not as a peripheral concern but as a pillar of stability.

“This underscores the importance of the discussions we will have during this Workshop on building confidence in normal times and strengthening communication strategies during crises.”

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖