Business
THE Nigeria Deposit Insurance Corporation (NDIC) is hosting deposit insurers from across Africa to strengthen financial crisis preparedness through knowledge sharing, experience exchange and regional collaboration.
The Managing Director of NDIC, Mr Thompson Sunday, said this at the International Association of Deposit Insurers (IADI) Africa Regional Committee Annual Meeting on Tuesday in Abuja.
Sunday said the meeting was aimed at promoting public awareness and strengthening financial crisis preparedness amid rapid changes in the financial environment driven by digital innovation.
He said deposit insurance systems were adapting to a rapidly evolving financial landscape shaped by technological innovation.
According to him, lessons from the 2023 banking crisis and the 2007-2008 Global Financial Crisis underscored the need for greater readiness in safeguarding financial stability.
He noted that although different factors triggered the bank failures, they resulted in a widespread loss of confidence in banks and financial markets.
He said the crisis prompted national and international policymakers to examine their underlying causes and draw critical lessons.
“These events serve as a reminder that financial crises can emerge unexpectedly and evolve rapidly, particularly in digital environments where information travels instantaneously and depositors’ 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.
“It is, therefore, befitting that this workshop will examine practical approaches to crisis readiness, institutional preparedness, coordinated responses among financial safety-net participants and strategies for building resilience within our respective jurisdictions.
“Nigeria remains committed to strengthening the resilience of its financial system through sound regulation, effective supervision and robust depositor protection arrangements,” he said.
Sunday said the corporation would continue to work closely with the Federal Ministry of Finance, the Central Bank of Nigeria (CBN) and other financial safety-net participants to maintain financial stability and protect depositors.
“As our financial systems become more interconnected, no institution can effectively address emerging risks in isolation.
“The challenges before us require stronger partnerships, greater information sharing, enhanced cross-border cooperation and continuous investment in institutional capacity,” he said.
Also speaking, the Secretary-General of IADI, Eva Hupkes, commended the NDIC for providing exemplary deposit insurance leadership across the region.
Hupkes said Africa had a rapidly growing financial industry, with technology and innovation transforming the way people conducted financial transactions.
She noted that the continent recorded the world’s largest volume of mobile money transactions, making payments faster and more accessible.
“Financial safety-net institutions need to keep pace with these developments to maintain confidence in financial systems and ensure economic stability.
“Public trust in the banking sector is very critical,” she said.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, described deposit insurance as a proactive and strategic tool for strengthening public trust and promoting economic stability across Africa.
Oyedele said deposit insurance was not only about protecting savings but also about supporting financial inclusion.
He said when people trusted financial institutions, they saved more, enabling banks to increase lending, businesses to invest and jobs to be created.
According to him, public trust is fragile, adding that in the digital age, rumours and misinformation can spread across social media within seconds, creating liquidity shocks even for solvent institutions.
The CBN Governor, Mr Olayemi Cardoso, said public awareness and crisis preparedness were central to the integrity of any financial safety net.
Cardoso, represented by Mr Solaja Olayemi, Director, Other Financial Institutions Supervision Department of the CBN, said confidence remained the foundation on which banking systems operated.
The News Agency of Nigeria (NAN) reports that the workshop attracted deposit insurance authorities from across the African continent.
The IADI is the global standard-setter for deposit insurance systems and the principal forum for deposit insurers worldwide to share knowledge and expertise on effective deposit insurance systems, bank crisis management and resolution. (NAN)
A.I
July 21, 2026
Tags: CBN Mr Olayemi Cardoso Mr Solaja Olayemi Mr Thompson Sunday NDIC