Nigeria’s fiscal and financial authorities are pushing public confidence and crisis preparedness to the centre of efforts to strengthen Africa’s financial stability, warning that fragile trust can quickly undermine even well-capitalised banking systems.
Speaking at the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee Annual Meeting and Workshop in Abuja on Tuesday, Taiwo Oyedele, finance minister and coordinating minister of the economy said economic growth depends on a stable financial system, while stability itself rests on public trust.
“The theme of this workshop rests on one fundamental truth: there can be no economic growth without financial system stability, and there can be no financial stability without public trust,” Oyedele said.
The three-day gathering, hosted by the Nigeria Deposit Insurance Corporation (NDIC), brings together deposit insurers, regulators and financial safety-net institutions from across Africa to discuss public awareness, crisis readiness and the future resilience of financial systems.
Oyedele said deposit insurance has evolved from a mechanism focused mainly on managing failed banks into a strategic tool for maintaining confidence and preventing instability.
“Building public awareness in normal times is not a public relations exercise. It is a core risk mitigation strategy,” he said, adding that misinformation in the digital age could trigger liquidity pressures even at otherwise sound institutions.
He said crisis preparedness must become a permanent feature of financial regulation, requiring strong coordination between finance ministries, central banks, deposit insurers and other oversight bodies.
“The most successful crisis response is often the one that never becomes visible, because effective preparation prevented panic from occurring in the first place,” Oyedele said.
Nigeria’s recent banking sector reforms, including recapitalisation, were highlighted as evidence of efforts to strengthen confidence in the financial system. Oyedele emphasised that the CBN completed its two-year recapitalisation programme in March 2026, with 33 out of 37 banks meeting new capital requirements and raising a combined 4.65 trillion naira ($3.5 billion) in fresh capital.
More than 70% of the funds came from domestic investors, he said, describing the outcome as a reflection of growing confidence in the banking sector.
“A better capitalised banking system is a more resilient one, better able to absorb shocks and sustain lending without recourse to the Deposit Insurance Fund,” Oyedele said.
Oyedele said Nigeria’s reform programme, including foreign exchange market reforms, the removal of fuel subsidies and efforts to restore monetary policy discipline, has helped strengthen confidence in the economy.
He also cited Nigeria’s removal from the Financial Action Task Force grey list in 2025 as another step toward improving the credibility of the country’s financial system.
The minister said Africa must play a greater role in shaping global financial standards as the continent’s financial landscape changes through digital payments, fintech adoption and deeper economic integration.
“No single institution preserves financial stability alone,” Oyedele said. “Central banks, deposit insurers, supervisors, finance ministries, resolution authorities and the media each have a role to play.”
The workshop focused on strengthening deposit insurance frameworks, improving crisis communication and building resilience among financial institutions across Africa.
In his speech, Olayemi Cardoso, governor, CBN noted that confidence remains the foundation of any effective financial system, as banks rely on depositors’ trust to perform their intermediation role.
“Confidence is the foundation upon which banking systems operate,” he said, adding that deposit insurance provides assurance to customers while supporting orderly resolution of distressed institutions.
He said public awareness should be treated as a critical component of financial stability, particularly as social media and digital platforms allow rumours to spread rapidly and influence depositor behaviour.
“An informed public is better equipped to make sound financial decisions and less susceptible to misinformation, speculation and unfounded fears that may undermine confidence in the financial system,” he said.
Represented by Sholaja Mohammed-Jamiu Olayemi, Director, Other Financial Institutions Supervision Department, Cardoso also pointed to the importance of Nigeria’s banking sector recapitalisation exercise, saying stronger bank balance sheets reduce the likelihood of failures and limit pressure on deposit insurance systems.
For Hassan Dabhol, NDIC managing director and chief executive officer, the changing nature of finance requires deposit insurers across Africa to continuously strengthen their systems.
Hassan said digital innovation, fintech expansion, artificial intelligence and cross-border banking activities are creating new opportunities but also introducing risks that require coordinated responses.
“Trust takes years to build but can be eroded within days if stakeholders perceive uncertainty or instability,” he said.
The NDIC chief executive said the corporation has continued to improve its depositor reimbursement systems, public awareness initiatives and crisis management capabilities since it began operations in 1989.
He added that cooperation among African deposit insurers is becoming increasingly important as financial markets become more interconnected.
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