Oyedele warns that public trust, not just fiscal and monetary policies, is essential to economic stability and long-term investment…..
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has stressed that Nigeria’s ambition for sustained economic growth depends on maintaining a stable financial system anchored on public confidence.
Speaking on Tuesday at the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee Annual Meeting and Workshop in Abuja, the minister said no economy can achieve lasting prosperity if its financial institutions are vulnerable to panic and instability.
“There can be no economic growth without financial system stability, and there can be no financial stability without public trust,” Oyedele told participants at the event, which brought together financial regulators, policymakers and deposit insurance agencies from across Africa.
According to the minister, confidence in banks and other financial institutions plays a critical role in driving savings, investment and business expansion, making it a cornerstone of economic development.
He noted that while governments can deploy monetary and fiscal policies to stimulate growth, such measures will have limited impact if the financial system is weakened by uncertainty or systemic risks.
“The banking system is the nervous system of the macroeconomy. When depositors trust that their money is safe, capital flows productively, credit expands and businesses grow,” he said.
Digital Misinformation Poses Growing Risk
Oyedele also warned that the rapid spread of misinformation on digital platforms has become an emerging threat to financial stability.
He said false reports circulating online can trigger panic withdrawals and liquidity pressures, even in financially healthy institutions, if depositors lose confidence.
According to him, regulators and financial institutions must make crisis preparedness a permanent part of their operations rather than reacting only after problems emerge.
“The most effective crisis response is often the one that prevents panic before it begins,” he said.
Reforms Strengthening the Financial System
The minister highlighted several economic reforms implemented under President Bola Tinubu’s administration, including 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 of government deficits.
He said the measures are helping to strengthen macroeconomic stability and improve investor confidence.
Oyedele also pointed to the completion of Nigeria’s banking sector recapitalisation programme in March 2026, revealing that 33 of the country’s 37 banks met the new capital requirements after raising a combined N4.65 trillion, with more than 70 percent of the funds coming from domestic investors.
He said stronger bank capital positions would improve the sector’s ability to absorb economic shocks while reducing the likelihood of failures that could threaten depositors’ funds.
The minister further noted that Nigeria’s removal from the Financial Action Task Force (FATF) grey list in October 2025 has enhanced confidence in the country’s financial system following reforms aimed at strengthening anti-money laundering controls and regulatory coordination.
CBN, Lawmakers and NDIC Echo Confidence Message
Representing Central Bank of Nigeria Governor Olayemi Cardoso, Director of Other Financial Institutions Supervision Solaja Olayemi described public confidence as the foundation of every resilient banking system.
He warned that the speed at which information spreads online means misinformation can quickly undermine depositor confidence if not effectively managed.
Olayemi also said the CBN’s bank recapitalisation programme is expected to strengthen the industry and further reduce the risk of bank failures.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Mukhail Abiru, called for continued legislative support to reinforce Nigeria’s financial safety net, describing financial stability as critical to national development.
Earlier, the Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Sunday, urged African deposit insurers to deepen collaboration in addressing emerging risks facing the financial sector.
Reflecting on the lessons from the 2023 global banking crisis, Sunday said stronger crisis preparedness, effective supervision and coordinated regulatory action are becoming increasingly important as financial systems grow more interconnected and digital.
He expressed confidence that the regional meeting would strengthen cooperation among African deposit insurers and improve depositor protection across the continent.
