Nigeria: Oyedele Calls for Stronger Collaboration to Safeguard Financial System Stability

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has called for stronger collaboration among financial sector institutions to reinforce financial system stability, describing it as a fundamental requirement for sustainable economic growth and prosperity.

Speaking at the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual Meeting and Workshop in Abuja, Oyedele said strengthening public confidence in financial institutions remains essential as economies navigate evolving opportunities and emerging financial risks.

According to the minister, economic growth cannot be sustained without a stable financial system, while financial stability itself depends on maintaining public trust in financial institutions.

“When the public has confidence in financial institutions, savings increase, investment expands, and economic opportunities multiply,” he said.

Financial Stability Underpins Economic Growth

Oyedele emphasised that fiscal and monetary policies alone cannot deliver long-term economic prosperity if the financial system remains vulnerable to instability, capital flight, or systemic shocks.

He described the banking sector as the backbone of the broader economy, noting that depositor confidence enables productive capital flows, supports credit expansion, and creates an environment where businesses can grow.

According to him, safeguarding confidence in financial institutions is critical to ensuring the resilience of the financial system and sustaining economic development.

Strong Bank Capital Supports Resilience

The minister also highlighted the importance of maintaining a well-capitalised banking sector, noting that stronger capital buffers improve the ability of financial institutions to withstand economic shocks while continuing to support lending activities.

He explained that a robust banking system is better positioned to absorb financial stress without placing undue pressure on deposit insurance mechanisms, thereby strengthening overall financial stability.

Deposit Insurance Promotes Financial Inclusion

Oyedele further stressed that deposit insurance extends beyond protecting depositors’ funds, describing it as a key driver of financial inclusion and inclusive economic growth.

According to him, greater public trust in financial institutions encourages higher savings, which in turn expands banks’ lending capacity, stimulates business investment, and creates employment opportunities.

He noted that this cycle is particularly important across Africa, where expanding financial inclusion remains one of the continent’s greatest opportunities for accelerating sustainable economic development.

The minister reaffirmed the need for stronger cooperation among governments, regulators, financial institutions, and deposit insurers to build resilient financial systems capable of supporting inclusive growth and maintaining public confidence in the banking sector.