African Regulators Must Work Together To Tackle Cross-Border Risks—Cardoso

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has urged African financial regulators to strengthen cooperation in managing cross-border risks. He also restated the CBN’s commitment to entrenching robust corporate governance in Nigeria’s financial system.

The CBN governor made the at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision held at the CBN headquarters in Abuja on Tuesday.

Cardoso stated that, as African banks and financial systems become increasingly interconnected, collaboration among regulators is not optional but essential to safeguard stability and ensure shared prosperity across the continent.

Cardoso urged African regulators to deepen cooperation in managing cross-border risks, emphasising that regional financial integration is outpacing political coordination.
He called for the adoption of shared prudential principles tailored to Africa’s realities, noting that this framework would enable regulators to respond jointly and effectively to emerging vulnerabilities while supporting inclusive growth.

Building on this continental vision, the Governor outlined how Nigeria’s regulatory and supervisory reforms exemplify proactive leadership.

He recalled that in 2024, the CBN anticipated upcoming challenges and launched the Banking Sector Recapitalisation Programme to strengthen the resilience of Nigerian banks.

The policy, he noted, inspired similar reforms across Africa, adding that Nigerian banks, despite navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital, nearly 27 per cent from foreign investors, while even expanding their footprint across African markets.

Cardoso reaffirmed the Bank’s commitment to robust corporate governance, emphasising decisive measures such as ending years of regulatory leniency and restricting banking services to chronic defaulters.

“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” he declared.

“In line with this, we have implemented a restriction of banking services to non‑performing large‑ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability.

By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system,” Cardoso added.
On the policy front, he reiterated that the CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency.

Speaking further on the transformative role of financial technology, the governor outlined the bank’s deliberate strategy to engage and regulate fintechs in a way that balances innovation with stability. He said the CBN’s Fintech Policy Report and structural reforms are part of ongoing efforts to build supervisory capacity for a fast-evolving digital financial ecosystem.

Mr Cardoso stated that the forum should continue to serve as a platform for collective learning and action, where regulators can analyse shared challenges, exchange insights, and develop a cohesive African response to global financial trends.

He visualised a future where collaboration among African regulators becomes the continent’s strongest defence and greatest asset, transforming its financial systems into catalysts for sustainable growth and development.

In his opening remarks, the Director, IMF/AFRITAC West 2, Dr Ivohasina Fizara Razafimahefa, said the gathering served as a platform for open dialogue between staff of the International Monetary Fund (IMF) and national financial regulators, enabling the sharing of practical experience, technical insights, and policy innovations across participating countries.

According to him, the forum concentrated on emerging and rapidly evolving risks affecting financial stability, noting that this year’s discussions centred on collective strategies to tackle challenges arising from digital finance, fintech expansion, artificial intelligence (AI), and climate-related financial risks.

He said the issues observed would demand regional coordination, proactive regulation, and ongoing dialogue among stakeholders to protect the resilience of Africa’s financial systems.

The IMF AFRITAC West 2 High-Level Executive Forum, which attracted senior representatives, including Central Bank Deputy Governors, from six member countries, reaffirmed its commitment to collaboration and shared learning in addressing the region’s evolving financial stability challenges.