The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has described deposit insurance as a vital instrument for strengthening public confidence in the financial system and promoting economic stability across Africa.
Speaking on Tuesday at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee Annual Meeting and Workshop in Abuja, hosted by the Nigeria Deposit Insurance Corporation (NDIC), the minister said deposit insurance extends beyond protecting depositors’ funds.
Represented at the event, the minister said an effective deposit insurance system encourages financial inclusion, builds trust in the banking sector and supports broader economic growth.
According to him, greater confidence in financial institutions encourages individuals and businesses to save more, enabling banks to provide increased credit to businesses, stimulate investment and create employment opportunities.
However, he warned that public confidence remains fragile, particularly in the digital age where misinformation can quickly spread and trigger liquidity pressures, even in financially sound institutions.
“If depositors do not know their funds are protected, they will act on fear.
“Building public awareness during normal times is not a public relations exercise but a core risk-mitigation strategy.
“Our messaging must reach every segment of society, from retail depositors and MSMEs to underserved rural communities,” he said.
The minister also emphasised the importance of continuous crisis preparedness, noting that institutions must develop effective communication systems, coordination mechanisms and conduct regular simulation exercises to preserve public confidence during periods of financial stress.
Also speaking, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the financial services industry is undergoing rapid transformation driven by digital innovation, changing consumer behaviour and growing cross-border risks.
Represented by the Director of the CBN’s Other Financial Institutions Supervision Department, Solaja Olayemi, Cardoso said strengthening public awareness and crisis preparedness has become increasingly important to maintaining confidence in the financial system.
He noted that deposit insurance remains a critical component of the financial safety net by protecting depositors and supporting the orderly resolution of distressed financial institutions, thereby reducing the risk of bank runs during periods of uncertainty.
Earlier, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Sunday, said deposit insurers across the world are adapting to a rapidly evolving financial landscape shaped by financial technology, artificial intelligence and increasing cross-border financial activities.
He described the workshop’s theme, “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” as timely, stressing that public confidence depends not only on strong protective frameworks but also on ensuring that citizens understand and trust those systems during both stable and challenging times.
The Secretary-General of the International Association of Deposit Insurers (IADI), Eva Hupkes, commended the NDIC for its leadership in advancing deposit insurance across Africa.
She noted that the continent’s rapidly expanding financial sector, particularly the growth of mobile money services, highlights the need for financial safety-net institutions to evolve alongside technological developments.
According to Hupkes, sustaining public confidence in the banking sector remains essential to safeguarding financial system stability.
The workshop brought together deposit insurers, financial regulators and policymakers from across Africa to discuss strategies for strengthening financial resilience and crisis preparedness.
The International Association of Deposit Insurers (IADI) is the global standard-setting body for deposit insurance systems and serves as a platform for sharing knowledge and best practices on deposit insurance, bank crisis management and financial sector resolution.
