Africa Must Unite to Tackle Cross-Border Financial Risks, Says CBN Governor Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on African financial regulators to strengthen collaboration to address cross-border risks threatening the continent’s financial stability. Speaking at the 4th Annual IMF AFRITAC West 2 High-Level Executive Forum in Abuja, Cardoso emphasized that as African banks and financial systems become increasingly interconnected, coordinated action among regulators is no longer optional—it is essential.
“Regional financial integration is advancing faster than political coordination,” Cardoso said. “To protect Africa’s financial stability and promote inclusive growth, regulators must adopt shared prudential principles tailored to the continent’s realities.”
The Governor highlighted Nigeria’s regulatory reforms as a continental benchmark. In 2024, the CBN launched the Banking Sector Recapitalisation Programme, designed to strengthen the resilience of Nigerian banks. Despite navigating subsidy removals and exchange rate reforms, Nigerian banks attracted ₦4.61 trillion in new capital, with nearly 27% sourced from foreign investors, while also expanding their operations across African markets.
“Our proactive reforms have not only fortified the domestic banking sector but have also inspired similar initiatives across Africa,” Cardoso said.
Zero-Tolerance on Weak Governance
Cardoso reaffirmed the CBN’s commitment to robust corporate governance, declaring an end to years of regulatory leniency. Measures now include stricter supervision and the restriction of banking services to chronic high-value loan defaulters.
“Our stance on corporate governance is unequivocal: zero tolerance for violations,” he said. “By curbing access to banking services for chronic defaulters, we are reinforcing accountability, credit discipline, and financial integrity, while protecting depositors and the stability of the financial system.”
Fintech and the Future of Regulation
The Governor also outlined the Bank’s deliberate strategy to regulate fintechs in a manner that encourages innovation while preserving stability. The CBN’s Fintech Policy Report and related structural reforms aim to strengthen supervisory capacity, ensuring that digital financial ecosystems evolve safely.
“Financial technology offers enormous potential, but it must be carefully managed to avoid systemic risk,” Cardoso said.
Forum as a Platform for Collective Action
The forum, which brought together central bank deputy governors and senior regulators from six African countries, served as a platform for collective learning and discussion on emerging threats, including digital finance risks, artificial intelligence, and climate-related financial exposures.
Ivohasina Fizara Razafimahefa, Director of IMF AFRITAC West 2, noted that the forum promotes knowledge-sharing and practical collaboration among regulators to enhance the resilience of Africa’s financial systems.
Cardoso concluded by envisioning a future where African regulators act in concert as the continent’s strongest defense against global financial shocks. “Collaboration among African regulators can transform our financial systems into engines of sustainable growth and development,” he said.
Key Takeaways from the Forum:
African financial integration is progressing faster than political coordination.
Shared prudential principles across the continent are critical for managing cross-border risks.
Nigeria’s proactive reforms in 2024 strengthened banking resilience and attracted ₦4.61 trillion in new capital.
CBN enforces zero tolerance for weak governance, curbing services for chronic defaulters.
Fintech regulation aims to balance innovation with financial system stability.
The forum facilitates regional dialogue on emerging risks from digital finance, AI, and climate-related exposures.
The event underscored the importance of united regulatory action across Africa to safeguard financial stability, attract investment, and drive long-term economic growth.
Central Bank of Nigeria Governor Olayemi Cardoso calls for stronger African regulatory cooperation to manage cross-border risks, highlights Nigeria’s corporate governance reforms, and stresses fintech’s role in financial stability.