Cardoso Calls for African Financial Regulators to Unite Against Rising Cross-Border Risks

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on African financial regulators to strengthen collaboration to address rising cross-border risks as financial integration across the continent accelerates. Speaking at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision, Cardoso emphasized that unified supervision is critical to safeguard stability and unlock shared prosperity.

Cardoso warned that the pace of financial integration is outstripping political and regulatory coordination, creating vulnerabilities no single country can manage alone. He urged regulators to adopt shared prudential frameworks tailored to Africa’s unique realities, enabling quicker responses to emerging risks while supporting inclusive economic growth. “Collaboration among regulators is not optional but essential to ensure stability across interconnected financial systems,” he said.

Highlighting Nigeria’s proactive reforms as a model, Cardoso recalled the 2024 Banking Sector Recapitalisation Programme, which raised N4.61 trillion in fresh capital for Nigerian banks, including nearly 27% from foreign investors. The initiative has strengthened local banks’ balance sheets and enabled them to expand operations across Africa, despite domestic economic challenges including subsidy removals and foreign exchange reforms.

On governance and accountability, Cardoso reaffirmed the CBN’s zero-tolerance approach toward regulatory violations and chronic defaulters. Measures include restricting banking services to large non-performing loan obligors, tightening supervision, and elevating compliance standards. “These decisive steps reinforce credit discipline, protect depositors, and safeguard financial stability,” he said.

Looking to the future, Cardoso stressed the growing influence of financial technology and the importance of balancing innovation with systemic stability. He encouraged regulators to deepen knowledge-sharing, describing forums like AFRITAC West 2 as vital for shaping a coordinated African response to global financial challenges. Director of AFRITAC West 2, Ivohasina Fizara Razafimahefa, added that stronger regional coordination and proactive regulation are essential to address evolving risks from digital finance, fintech, AI, and climate change.

source: The sun