Cardoso Seeks Stronger Cross-Border Regulatory Cooperation

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on African financial regulators to deepen collaboration in tackling cross-border risks, stressing that stronger partnerships are critical to preserving financial stability across the continent.

Cardoso made the call 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, where he underscored the growing interconnectedness of African financial systems.

He noted that as regional financial integration accelerates, cooperation among regulators has become imperative rather than optional.

“As African banks and financial systems become increasingly interconnected, collaboration among regulators is not optional but essential to safeguard stability and ensure shared prosperity,” he said.

The CBN governor warned that financial integration in Africa is advancing faster than political coordination, urging regulators to adopt shared prudential frameworks tailored to the continent’s unique realities.

According to him, such coordinated frameworks would enable regulators to respond more effectively to emerging vulnerabilities while promoting inclusive growth.

Cardoso highlighted Nigeria’s ongoing reforms as a model of proactive regulatory leadership, recalling that the apex bank launched the Banking Sector Recapitalisation Programme in 2024 to strengthen the resilience of the financial system.

He disclosed that despite macroeconomic headwinds, including subsidy removal and exchange rate reforms, Nigerian banks attracted about N4.61 trillion in fresh capital, with nearly 27 per cent sourced from foreign investors, while also expanding operations across African markets.

Reaffirming the apex bank’s stance on governance, Cardoso declared zero tolerance for regulatory breaches, noting that decisive steps had been taken to enforce compliance and accountability within the banking sector.

“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 said.

He added that restricting banking services to chronic defaulters was part of measures aimed at strengthening credit discipline and protecting the financial system.

“By curbing access to banking services for non-performing large-ticket obligors, we are reinforcing a culture of repayment, protecting depositors, and safeguarding financial stability,” he stated.

On monetary policy, the governor reiterated the CBN’s commitment to orthodox measures geared towards restoring price stability, enhancing policy credibility, and anchoring market expectations through consistency and discipline.

Cardoso also spoke on the growing role of financial technology, noting that the apex bank is adopting a balanced regulatory approach that supports innovation while safeguarding system stability.

He said the Bank’s Fintech Policy Report and ongoing structural reforms are designed to strengthen supervisory capacity in response to the rapidly evolving digital financial ecosystem.

The CBN boss further emphasised the need for sustained engagement among regulators, expressing optimism that the forum would continue to serve as a platform for shared learning and coordinated action.

Earlier in his remarks, Director of IMF AFRITAC West 2, Ivohasina Fizara Razafimahefa, said the forum provides an avenue for open dialogue between the International Monetary Fund (IMF) and national regulators.

He explained that discussions at this year’s forum focused on emerging risks to financial stability, including digital finance, fintech expansion, artificial intelligence, and climate-related financial threats.

Razafimahefa stressed that addressing these challenges would require stronger regional coordination, proactive regulation, and continuous stakeholder engagement to safeguard the resilience of Africa’s financial systems.