Business
Banks must earn public trust — Oyedele
Says recapitalisation will strengthen resilience
NDIC vows to protect depositors
By Emma Ujah, Abuja Bureau Chief
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, yesterday urged regulators and operators in the banking sector to strengthen public confidence to support a resilient economy.
Speaking at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) workshop in Abuja, Oyedele 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 stronger our economies and prosperity for our people.”
He said the ongoing banking recapitalisation was designed to make banks stronger amid global economic uncertainties.
According to him, “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. 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.”
He added: “Deposit insurance is necessary for inclusive growth. It 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.”
Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, declared that protecting depositors remains the corporation’s top priority.
He said the workshop theme, “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” was timely, noting that digital innovation, fintech, artificial intelligence and cross-border financial activities were reshaping deposit insurance systems globally.
According to him, “Confidence remains the most valuable asset in any financial system. Trust takes years to build but can be eroded within days. Public awareness is an essential pillar of effective deposit insurance systems. A well-informed depositor is more likely to make rational decisions and less likely to react adversely to rumours and misinformation during periods of uncertainty.”
On crisis preparedness, Sunday said the 2023 banking turmoil, the most severe episode of systemic stress since the 2007-2008 global financial crisis, highlighted the need for readiness.
He said: “These events remind us that financial crises can emerge unexpectedly and evolve rapidly, particularly in digital environments where information travels instantaneously and depositor reactions are amplified by technology and social media. Preparedness, effective coordination and timely intervention can make the difference between maintaining stability and allowing contagion to spread.”
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Sen. Mukhail Abiru, described financial stability as “the quiet heartbeat of a thriving nation” that prevents orderly resolution from descending into panic.