Cardoso Urges African Regulators to Cooperate on Financial Risks
By Patience Ikpeme
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has called on financial regulators across the continent to forge tighter bonds in managing cross-border risks to protect the stability of Africa’s increasingly interconnected banking systems.
Speaking on Tuesday, March 24, 2026, at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum held at the CBN headquarters in Abuja, Mr. Cardoso noted that regional financial integration is currently moving at a faster pace than political coordination. He maintained that deliberate collaboration is no longer a choice but a fundamental necessity for ensuring shared economic prosperity.
Mr. Cardoso advocated for the creation of shared prudential principles specifically designed to reflect African economic realities. This framework, he explained, would allow regulators to mount a joint defense against emerging vulnerabilities while fostering inclusive growth.
“As African banks and financial systems become increasingly interconnected, collaboration among regulators is not optional but essential to safeguard stability,” the Governor stated. He envisioned a future where such cooperation serves as the continent’s primary defense, transforming financial systems into “catalysts for sustainable growth and development.”
Reflecting on Nigeria’s domestic reforms, Mr. Cardoso pointed to the 2024 Banking Sector Recapitalisation Programme as a blueprint for proactive leadership. He observed that the policy has served as a reference point for similar reforms across the continent.
Despite the complexities of subsidy removals and exchange rate adjustments, the Governor revealed that Nigerian banks successfully raised ₦4.61 trillion in new capital. Notably, nearly 27% of this funding came from foreign investors, a trend that occurred even as Nigerian financial institutions expanded their operations across other African markets.
A significant portion of the Governor’s address focused on the internal discipline of the Nigerian banking sector. He announced a definitive end to the era of regulatory leniency, stating that the CBN has shifted toward a regime of strict accountability.
“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,” Mr. Cardoso declared.
In a move to instill credit discipline, the CBN has also restricted banking services for large-ticket chronic defaulters.
“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,” he added.
On the technological front, the Governor detailed the Bank’s strategy to regulate the fintech space without stifling innovation. He mentioned that the CBN’s Fintech Policy Report and ongoing structural reforms are designed to build supervisory capacity for a digital ecosystem that is evolving at high speed.
Furthermore, he confirmed that the CBN remains anchored in “orthodox monetary policy,” with a primary focus on restoring price stability and strengthening the credibility of the naira through consistent discipline.
The Director of IMF/AFRITAC West 2, Dr. Ivohasina Fizara Razafimahefa, noted that the forum provides a vital space for open dialogue between the International Monetary Fund and national regulators. He explained that this year’s discussions are centered on the rapid expansion of digital finance, artificial intelligence, and climate-related financial risks.
According to Dr. Razafimahefa, these modern challenges require “regional coordination, proactive regulation, and ongoing dialogue” to protect the resilience of Africa’s financial landscape.
The high-level gathering, which drew Central Bank Deputy Governors and senior representatives from six member countries, concluded with a renewed pledge to use the forum as a platform for collective learning and the development of a cohesive African response to global financial trends.
