The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, is recalibrating its monetary policy tools to enhance the nation’s financial system’s resilience amid evolving economic challenges. Cardoso emphasized that the focus on strengthening liquidity management, stability, and investor confidence would safeguard Nigeria’s financial ecosystem. The CBN aims to raise regulatory standards and improve compliance to align Nigeria’s financial sector with global best practices, fostering transparency and trust among stakeholders.
Cardoso’s administration has placed a significant emphasis on fostering a strong compliance culture within Nigeria’s financial institutions. A recent Mandatory Compliance and Anti-Money Laundering (AML) Workshop, organized in collaboration with Citi, highlighted the importance of strict adherence to global banking standards. The CBN is reinforcing the necessity for financial institutions to integrate robust risk management frameworks and comply with evolving regulatory developments to maintain the sector’s credibility and safeguard against financial crimes.
The CBN governor also addressed the banking sector’s resilience, noting that indicators such as the non-performing loan ratio and liquidity levels are well within regulatory benchmarks. Furthermore, efforts to strengthen banks’ capital buffers through recapitalization initiatives are well underway, with several banks already meeting the new capital requirements ahead of the 2026 deadline. This strategy ensures the banking sector can provide more credit to micro, small, and medium enterprises (MSMEs) and underserved markets, contributing to Nigeria’s economic recovery and growth.
Cardoso also spotlighted Nigeria’s fintech ecosystem, which has positioned the country as an innovation hub in Africa. E-payment transactions reached a historic $702.6 billion in 2024, marking a significant milestone in the adoption of digital financial services. This surge is attributed to the CBN’s cashless policy and the growing use of digital payment platforms, further driving financial inclusion across Nigeria. As the CBN continues to enhance regulatory measures and support fintech innovation, Nigeria’s financial sector is poised to expand its role in the global economy.
SOURCE: THE SUN