Federal Authorities Reaffirm Commitment to Financial System Stability Amid Economic Adjustment

The Federal Government and the Central Bank of Nigeria have reaffirmed their joint commitment to safeguarding financial system stability as the economy navigates ongoing structural adjustments. The position was restated during a high-level policy engagement involving fiscal authorities, financial institutions, and market stakeholders, where emphasis was placed on coordination, prudence, and institutional resilience.

The Minister of Finance (State), Dr. Doris Uzoka-Anite described financial stability as the foundation upon which economic reform, investment confidence, and inclusive growth must rest. According to the Minister, recent policy actions have been deliberately sequenced to protect the integrity of the financial system while enabling broader economic realignment.

She stated that “macroeconomic reform cannot succeed in an environment of financial fragility. Our priority is to ensure that banks, capital markets, and financial intermediaries remain sound, transparent, and capable of supporting productive activity across the economy.”

The Minister emphasized the importance of fiscal discipline and credibility in reinforcing financial sector confidence. “Fiscal management and financial stability are deeply interconnected. When government demonstrates discipline, clarity, and predictability in its fiscal operations, it reduces systemic risk and strengthens confidence across the financial ecosystem,” she said.

She further noted that government borrowing and debt management strategies were being aligned with sustainability objectives. “We are committed to responsible debt management and efficient resource allocation. This is essential not only for public finance health but also for maintaining stability within the broader financial system,” the Minister added.

The Governor of the Central Bank of Nigeria, speaking at the same forum, underscored the apex bank mandate to preserve monetary and financial stability through vigilant supervision and risk management. He stated that the Central Bank remained fully engaged in monitoring banking sector soundness, liquidity conditions, and emerging vulnerabilities.

According to the Governor, “financial stability is not achieved by chance. It is the result of continuous supervision, robust regulation, and proactive engagement with financial institutions. Our focus is to ensure that Nigerian banks remain resilient, well capitalized, and capable of supporting economic recovery.”

He highlighted the evolving risk landscape, particularly in relation to digital finance and cross border capital flows. “As financial services become more technology driven, new forms of risk emerge. Cybersecurity, operational resilience, and governance standards are now central to our supervisory priorities,” the Governor stated.

The Central Bank Governor also addressed the role of monetary policy coordination in stabilizing expectations. “Policy credibility matters. Clear communication and consistency help anchor expectations and reduce volatility. Our actions are guided by data, risk assessment, and the long-term objective of price and financial stability,” he said.

Both officials stressed the importance of collaboration between fiscal and monetary authorities. The Minister observed that “policy coherence between government and the Central Bank is essential. When institutions work in alignment, the financial system is better positioned to absorb shocks and support growth.”

The Governor echoed this position, noting that “financial stability is a shared responsibility. Regulators, policymakers, and market participants must each play their role in maintaining confidence and discipline within the system.”

Market analysts have described the joint messaging as a signal of institutional coordination at a critical period. They note that sustained stability in the banking and financial sector remains vital for credit expansion, investment mobilization, and economic resilience.

As economic reforms continue to unfold, authorities have indicated that financial system stability will remain a central policy anchor. The Minister concluded by stating that “a stable financial system is not an end in itself. It is the platform upon which jobs, enterprise, and long-term prosperity are built.”