The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has urged regulators, financial institutions and other stakeholders in Nigeria's banking sector to intensify efforts aimed at strengthening public confidence in the financial system, stressing that trust remains the bedrock of economic growth and financial stability.

Oyedele made the call on Tuesday while delivering his keynote address at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Workshop held in Abuja.

Speaking on the theme of the workshop, the minister stressed that confidence in the banking system cannot be created through legislation or government directives but must be built over time through transparency, accountability, effective communication and strong institutions.

"Confidence cannot be legislated, purchased, or imposed; it must be earned through strong institutions, transparency, effective communication, preparedness and consistent action," he said.

According to him, stronger institutions naturally inspire greater public trust, which in turn strengthens the resilience of the financial system and enhances economic prosperity.

"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," Oyedele stated.

The minister explained that the ongoing recapitalisation of banks in Nigeria is designed to make financial institutions stronger and better equipped to withstand both domestic and global economic shocks.

He noted that a well-capitalised banking industry reduces the likelihood of systemic failures and lessens dependence on deposit insurance intervention during periods of financial distress.

"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," he said.

Oyedele added that stronger bank balance sheets also reinforce the effectiveness of deposit insurance schemes by providing an additional layer of protection for depositors.

According to him, a banking system that enjoys global credibility encourages customers to save with confidence, thereby increasing financial intermediation and stimulating economic activities.

He stressed that deposit insurance remains a critical tool for promoting financial inclusion because it reassures depositors that their savings are protected.

"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," the minister said.

Oyedele further observed that Africa's financial ecosystem is evolving rapidly, driven by technological innovation, the rise of financial technology companies, digital payment systems and increasing cross-border banking operations.

While acknowledging the opportunities presented by these developments, he warned that they also introduce new risks capable of threatening financial stability if not properly managed.

He therefore called for stronger collaboration among central banks, deposit insurers, financial regulators, finance ministries, supervisory authorities and the media to ensure a coordinated response to emerging challenges.

"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 prepare for," he added.

Also speaking at the event, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, reaffirmed the corporation's commitment to safeguarding depositors and maintaining confidence in Nigeria's banking system.

He described the workshop's theme, "Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future," as both timely and significant, given the rapidly changing nature of the global financial landscape.

According to Sunday, deposit insurance systems across the world are being compelled to adapt to technological disruptions brought about by fintech innovations, artificial intelligence, digital banking and increasing cross-border financial activities.

He said although these innovations have expanded access to financial services and improved efficiency, they have also introduced new vulnerabilities that require stronger regulatory oversight and collaboration among financial safety-net institutions.

The NDIC boss stressed that public confidence remains the most valuable asset in any financial system, warning that while trust takes years to build, it can disappear within a very short period if uncertainty or instability emerges.

"Confidence remains the most valuable asset in any financial system. Trust takes years to build but can be eroded within days if stakeholders perceive uncertainty or instability," he said.

He maintained that the responsibilities of deposit insurers and regulators go beyond establishing protective policies, noting that they must also ensure that members of the public understand and trust the financial safety-net mechanisms available to them.

According to him, effective public awareness campaigns help depositors make informed decisions and reduce the likelihood of panic withdrawals fuelled by rumours, misinformation and social media speculation during periods of uncertainty.

Sunday also stressed the importance of crisis preparedness, drawing lessons from the global banking turbulence experienced in 2023, which he described as the most severe episode of systemic banking stress since the 2007–2008 global financial crisis.

He noted that although different factors triggered the collapse of several financial institutions worldwide, the crisis highlighted how quickly confidence in banks could deteriorate, especially in today's digital environment where information spreads instantly.

"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," he said.

In his remarks, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Abiru, described financial stability as the silent foundation upon which sustainable economic growth rests.

He said maintaining confidence in the banking system remains essential for protecting depositors, preserving market stability and preventing panic during periods of financial uncertainty.