Key points
- Finance Minister Taiwo Oyedele says deposit insurance is essential for strengthening public trust and economic stability.
- He says public awareness and crisis preparedness are critical to preventing panic in the banking system.
- The CBN and NDIC say deposit insurers must adapt to digital innovation and emerging financial risks.
- Industry stakeholders say maintaining confidence is key to financial system stability.
Main story
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, says deposit insurance is a strategic tool for strengthening public trust and promoting economic stability across Africa.
Oyedele said this on Tuesday in Abuja at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee Annual Meeting and Workshop, hosted by the Nigeria Deposit Insurance Corporation (NDIC).
He said deposit insurance goes beyond protecting depositors’ funds, noting that it also promotes financial inclusion and confidence in the banking system.
According to him, when people trust financial institutions, they save more, enabling banks to extend more credit to businesses, stimulate investment and create jobs.
Oyedele, however, said public trust remains fragile, particularly in the digital era where misinformation can trigger liquidity pressures, even in solvent 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 stressed the need for effective crisis preparedness, describing it as a continuous process rather than a one-off exercise.
He said institutions should establish communication channels, coordination mechanisms and simulation exercises ahead of potential crises to prevent panic and preserve confidence.
The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, represented by Mr Solaja Olayemi, Director of the Other Financial Institutions Supervision Department, said financial systems were undergoing significant transformation driven by digital innovation, changing consumer behaviour and increasing cross-border risks.
Cardoso said public awareness and crisis preparedness were essential to maintaining confidence in the financial system.
He said deposit insurance played a critical role in protecting depositors and supporting the orderly resolution of distressed institutions, thereby reducing the risk of bank runs during periods of uncertainty.
Earlier, the Managing Director of NDIC, Mr Thompson Sunday, said deposit insurers were adapting to a rapidly evolving financial environment shaped by fintech, artificial intelligence and cross-border financial activities.
Sunday described the workshop’s theme, “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” as timely.
He said building public confidence required not only effective protective frameworks but also ensuring that people understood and trusted those frameworks during both stable and challenging periods.
Also speaking, the Secretary-General of IADI, Ms Eva Hupkes, commended NDIC for its leadership in advancing deposit insurance across Africa.
She said Africa’s rapidly expanding financial sector, particularly the growth of mobile money, highlighted the need for financial safety-net institutions to keep pace with technological developments.
The issues
As financial services become increasingly digital, regulators and deposit insurers face growing challenges in maintaining public confidence, preventing panic and safeguarding financial stability during periods of uncertainty.
What’s being said
“Building public awareness during normal times is not a public relations exercise but a core risk-mitigation strategy.” — Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy
What’s next
Deposit insurers and financial regulators across Africa are expected to strengthen public awareness initiatives, crisis preparedness and collaboration to address emerging risks in the evolving financial sector.
Bottom line
Financial regulators say effective deposit insurance, backed by public awareness and crisis readiness, is critical to sustaining confidence in the banking system and supporting broader economic stability.
