CBN governor Cardoso seeks stronger cross‑border financial cooperation

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on financial regulators across Africa to intensify collaboration to manage cross-border risks in an increasingly interconnected banking environment.

Speaking at the fourth Annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision in Abuja on Tuesday, Cardoso emphasized that cooperation among regulators is no longer optional but a critical safeguard for financial stability on the continent.

He highlighted that as African banks expand across borders and financial markets become more integrated, a coordinated approach is essential to mitigate vulnerabilities and support sustainable growth.

“Regional financial integration is advancing faster than political coordination, which makes collaboration among regulators indispensable,” Cardoso said, urging his counterparts to adopt prudential principles specifically tailored to Africa’s unique financial landscape.

Cardoso also reaffirmed the CBN’s commitment to promoting strong corporate governance within Nigeria’s financial system. He outlined several reforms and interventions undertaken by the bank to strengthen oversight, enhance accountability, and ensure resilience within the sector.

Proactive Measures and Corporate Governance Reforms

Highlighting Nigeria’s proactive approach, the CBN governor cited the 2024 Banking Sector Recapitalisation Programme as a key example of forward-looking regulatory leadership. The programme aimed to prepare Nigerian banks for anticipated challenges and enhance their capacity to withstand economic shocks.

“Despite navigating subsidy removals and exchange rate reforms, Nigerian banks attracted N4.61 trillion in new capital, with nearly 27 percent coming from foreign investors, while also expanding operations across Africa,” Cardoso noted.

He stressed that the CBN has taken decisive steps to reinforce corporate governance, including ending years of regulatory leniency and imposing strict restrictions on chronic defaulters. The move to limit banking services to non-performing large-ticket obligors, he said, underscores the central bank’s commitment to credit discipline, financial integrity, and accountability.

These measures, according to Cardoso, not only protect depositors but also cultivate a stronger culture of repayment and ensure overall financial system stability.

Balancing Innovation with Stability

Cardoso also highlighted the transformative potential of financial technology in Africa. He explained that the CBN’s fintech strategy is designed to encourage innovation while safeguarding the stability of the financial system.

By implementing structural reforms and regulatory oversight, the central bank aims to build the capacity needed to supervise a rapidly evolving digital financial ecosystem.

He described forums like the IMF/AFRITAC West 2 gathering as crucial platforms for knowledge exchange and collective problem-solving, allowing African regulators to address emerging global financial challenges together.

Looking ahead, Cardoso envisioned a future where collaboration among African regulators would serve as a powerful defence mechanism, turning the continent’s financial systems into drivers of sustainable economic growth and development.

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