Oyedele: Deposit Insurance Remains Vital to Financial Stability Amid Rising Digital Risks
Oyedele: Deposit Insurance Remains Vital to Financial Stability Amid Rising Digital Risks
The Chairman of the Nigeria Deposit Insurance Corporation (NDIC), Dr. Kabir Sabo Oyedele, has reaffirmed the critical role of deposit insurance in safeguarding Nigeria’s financial system, warning that the rapid growth of digital banking and emerging financial technologies has heightened the need for stronger risk management and depositor protection.
Speaking at a stakeholders’ engagement on the future of deposit insurance, Oyedele said the financial services industry is undergoing significant transformation driven by digital innovation, fintech expansion and evolving cyber threats. He stressed that deposit insurance institutions must continue to adapt to emerging risks to preserve confidence in the banking sector and protect depositors’ funds.
According to him, an effective deposit insurance system remains one of the key pillars of financial stability, helping to prevent bank runs, strengthen public confidence and support the resilience of the financial sector during periods of economic uncertainty. He noted that the increasing adoption of digital financial services has created new opportunities for economic growth while also exposing financial institutions to cyberattacks, fraud and operational risks.
Oyedele called for stronger collaboration among financial regulators, deposit insurers, commercial banks, fintech companies and other stakeholders to build a more secure and resilient financial ecosystem. He emphasized the need for continuous investment in technology, cybersecurity infrastructure and regulatory frameworks capable of addressing the challenges associated with digital financial services.
He also urged financial institutions to prioritise innovation without compromising risk management, compliance and consumer protection. According to him, maintaining public trust in the banking system will require proactive supervision, effective crisis management mechanisms and sustained public awareness on the importance of deposit insurance.
The NDIC chairman reaffirmed the corporation’s commitment to protecting depositors, promoting financial inclusion and supporting the stability of Nigeria’s banking industry. He expressed confidence that stronger regulatory cooperation and technological advancement would further enhance the resilience of the country’s financial system in the digital age.
