By Augustine Martha, Abuja
Protect Depositors, Build Trust: Nigeria Champions New Financial Stability Drive
Nigeria has urged African countries to strengthen their deposit insurance frameworks, improve financial literacy and develop stronger crisis response mechanisms to protect depositors and preserve confidence in the continent’s financial systems.
The charge was made in Abuja during the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual Meeting and Workshop, which brought together policymakers, regulators, financial experts and stakeholders from across Africa.
The meeting, themed “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” focused on strategies to build stronger financial institutions capable of withstanding economic shocks and emerging risks.
Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said financial stability remains a key pillar of economic development, stressing that public confidence is essential for the survival and growth of any banking system.
Oyedele noted that deposit insurance has moved beyond its traditional role of reimbursing depositors after bank failures, explaining that it now serves as a major tool for preventing panic, managing risks and maintaining trust in the financial sector.
He warned that in today’s digital environment, misinformation and rumours can spread rapidly, creating unnecessary pressure on financial institutions and triggering liquidity challenges.
“Public trust is fragile. In the digital age, rumours and misinformation can spread across social platforms in seconds, creating liquidity shocks even for solvent institutions. Building public awareness is not a public relations exercise but a core risk-mitigation strategy,” he said.
The minister stressed that crisis preparedness must be embedded into the operations of financial institutions and regulatory agencies rather than activated only during emergencies.
He called for stronger collaboration among finance ministries, central banks, deposit insurers and other regulators to ensure a coordinated response whenever financial challenges arise.
Highlighting Nigeria’s recent financial sector reforms, Oyedele said the successful completion of the banking recapitalisation exercise in March 2026 had strengthened the country’s financial system, with 33 out of 37 banks meeting the new capital requirements and raising ₦4.65 trillion in fresh capital.
He added that Nigeria’s removal from the Financial Action Task Force (FATF) grey list in October 2025 demonstrated progress in strengthening financial transparency and regulatory compliance.
The minister said stronger banks and improved regulatory systems would reduce pressure on deposit insurance funds while increasing investor and depositor confidence.
The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Oludare Sunday, described the workshop as an important opportunity for African countries to share knowledge and strengthen depositor protection mechanisms.
Sunday said rapid technological developments, including artificial intelligence and digital banking innovations, had expanded financial inclusion but also created new risks that require stronger cooperation among regulators.
He warned that confidence remains the foundation of every financial system and could collapse quickly if uncertainty is not properly managed.
According to him, lessons from the global banking challenges of 2023 showed that financial crises can spread rapidly through digital platforms, making effective communication, crisis simulations and institutional preparedness critical.
He said the NDIC has continued to improve its depositor reimbursement processes, public awareness programmes and crisis management strategies in partnership with key financial sector institutions.
Also speaking, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, said sustainable financial stability requires strong laws, effective regulation and continuous engagement with the public.
Abiru pledged the National Assembly’s commitment to strengthening the NDIC’s legal framework, independence and accountability to enhance its effectiveness.
He cautioned that false information on social media could fuel panic withdrawals and create unnecessary pressure on banks, making financial education a crucial part of maintaining stability.
Representing the Governor of the Central Bank of Nigeria, the Director of Other Financial Institutions Supervision Department, Solaja Mohammed-Jamiu Olayemi, reaffirmed the apex bank’s commitment to strengthening the resilience of Nigeria’s financial system.
He said banking reforms, improved governance standards, consumer protection measures and financial inclusion initiatives remained central to safeguarding the sector.
Olayemi added that the growth of digital financial services makes it necessary for regulators to continuously improve cybersecurity, operational resilience and emergency response systems.
The Abuja meeting is expected to provide practical solutions for improving public awareness, crisis communication and coordinated responses to financial disruptions while promoting stronger depositor protection systems across Africa.
