The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said a stronger financial system was critical to building a more prosperous economy, calling for improved collaboration among relevant institutions.
He stated this yesterday at the opening of the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual Meeting and Workshop in Abuja. Oyedele said the gathering came at a time when financial systems worldwide faced both unprecedented opportunities and emerging risks. He noted that there can be no economic growth without financial system stability, and there can be no financial stability without public trust. “When the public has confidence in financial institutions, savings increase, investment expands and economic opportunities multiply,” he stated.
He submitted that monetary and fiscal policy alone could drive prosperity if the financial sector is vulnerable to panic, capital flight or systemic distress. Oyedele observed that the banking system is the nervous system of the macroeconomy, saying that, when depositors trust that their money is safe, capital flows productively, credit expands, and businesses grow.
Shedding light on how banks’ strong capital base can foster stability and resilience, Oyedele noted that a better-capitalised banking system is more resilient, better able to absorb shocks, and more capable of sustaining lending without recourse to the deposit insurance fund.
He maintained that deposit insurance does more than protect savings, adding that 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. This matters enormously across Africa where expanding financial inclusion remains one of our greatest opportunities for accelerating inclusive growth,” he said.