Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has stressed that financial stability remains the cornerstone of sustainable economic growth, warning that no nation can achieve lasting prosperity without a resilient and trusted financial system. Speaking at the 2026 International Association of Deposit Insurers Africa Regional Committee Annual Meeting and Workshop in Abuja, Oyedele said public confidence is the foundation upon which economic progress is built. According to him, economic growth and financial stability are closely linked, with trust serving as the bridge between the two.
Addressing financial regulators, policymakers, and deposit insurers from across Africa, Oyedele explained that stable financial institutions encourage savings, investment, and business expansion. He noted that while monetary and fiscal policies are important, they cannot deliver meaningful economic growth if the financial sector remains exposed to panic, capital flight, or systemic shocks. He described the banking system as the “nervous system” of the economy, emphasizing that confidence in banks allows capital to flow efficiently and supports business growth.
The minister also raised concerns about the growing threat of misinformation in the digital age, warning that false reports circulating on social media can quickly trigger fear among depositors and destabilize even financially healthy institutions. He urged financial authorities to prioritize public awareness and proactive communication, noting that depositor confidence can be lost within moments if people are uncertain about the safety of their funds. Oyedele added that crisis preparedness should be embedded in institutional culture rather than activated only during emergencies.
Highlighting recent reforms under President Bola Tinubu’s administration, Oyedele pointed to the unification of the foreign exchange market, the removal of fuel subsidies, and the end of the Central Bank of Nigeria’s Ways and Means financing as key steps toward strengthening macroeconomic stability. He also revealed that 33 out of Nigeria’s 37 banks successfully met revised capital requirements after raising a combined ₦4.65 trillion during the banking recapitalisation exercise completed in March 2026. According to him, stronger bank capital positions enhance resilience and reduce pressure on the deposit insurance system.
Other stakeholders at the event echoed the importance of trust and stability in safeguarding the financial system. Representatives of the Central Bank of Nigeria, the Senate Committee on Banking, and the Nigeria Deposit Insurance Corporation all emphasized that depositor confidence remains critical in an era where information spreads rapidly online. NDIC Managing Director Thompson Sunday noted that trust takes years to build but can disappear within days during periods of uncertainty. He expressed optimism that stronger collaboration among African deposit insurers would improve crisis preparedness, enhance depositor protection, and reinforce financial stability across the continent.
source: punch
