Financial stability remains foundation for growth – Oyedele

Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stressed that achieving sustainable economic growth hinges on maintaining stable financial systems underpinned by public confidence. Speaking at the International Association of Deposit Insurers Africa Regional Committee meeting in Abuja, Oyedele stated that monetary and fiscal policies alone are insufficient if the financial sector remains vulnerable.

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There can be no economic growth without financial system stability, and there can be no financial stability without public trust.

"There can be no economic growth without financial system stability, and there can be no financial stability without public trust," Oyedele declared. He explained that confidence in financial institutions encourages savings and investment, enabling business expansion. The minister warned that in the digital age, misinformation can rapidly destabilize even sound institutions, emphasizing the fragility of public trust. He urged for crisis preparedness to be ingrained in institutional culture rather than being a reactive measure.

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Monetary and fiscal policy alone cannot drive prosperity if the financial sector is vulnerable to panic, capital flight, or systemic distress.

Oyedele highlighted key reforms implemented by President Bola Tinubu's administration aimed at strengthening macroeconomic stability. These include unifying the foreign exchange market, removing the fuel subsidy, and ending the Central Bank of Nigeria's Ways and Means financing of government deficits. Furthermore, he pointed to the successful completion of the banking sector recapitalization exercise in March 2026, where 33 of Nigeria's 37 banks met the revised capital requirements, collectively raising N4.65 trillion, with over 70% from domestic investors. Oyedele asserted that a better-capitalized banking system is more resilient and better equipped to absorb shocks and sustain lending.

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Public trust is fragile. In the digital age, rumours and misinformation can spread across social platforms in seconds, creating liquidity shocks even for solvent institutions.