Banks must earn public confidence – Oyedele
…As NDIC boss declares protecting depositors a priority
Emma Ujah, Abuja Bureau Chief
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has challenged regulators and operators in the nation’s banking sector to strengthen public confidence in the industry for a robust economy.
Speaking at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) workshop, today, in Abuja, 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.”
Mr. 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.”
The Managing Director (MD) of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, in his address declared 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 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.”
On the importance of robust crisis preparedness, the NDIC boss said the lessons from the 2023 banking turmoil, the most severe episode of systemic stress since the 2007 – 2008 Global Financial Crisis, underscored the need for readiness in safeguarding financial stability.
He said, “Although different factors drove the bank failures, they triggered a widespread crisis of confidence in banks and financial markets, prompting national and international policymakers to examine the underlying causes and draw critical lessons.
“These events serve as a reminder that financial crises can emerge unexpectedly and evolve rapidly, particularly in digital environments, where information travels instantaneously, and depositor reactions can be amplified by technology and social media. In such circumstances, preparedness, effective coordination and timely intervention can make the difference between maintaining stability and allowing contagion to spread throughout the financial system.”
In his remarks, the Chairman, Senate Committee in Banking, Insurance and Other Financial Institutions, Sen. Mukhail Abiru, described financial stability as “the quiet heartbeat of a thriving nation and it is what separates an orderly resolution from a disorderly panic.”
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