By 
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, has called for increased regional collaboration to enhance financial stability and economic growth in the West African region.
Cardoso made this appeal during the 10th meeting of the College of Supervisors for Non-Bank Financial Institutions (CSNBFI) in Abuja, hosted by the West African Monetary Institute. The event brought together regulators, policymakers, and financial experts from across the region to address critical issues facing West Africa’s non-bank financial sector.
In his address, Cardoso stressed the vital importance of regional collaboration for strengthening financial stability and fostering economic growth within the West African Monetary Zone (WAMZ).
“Now, more than ever, the need for collaboration and cooperation amongst Member States cannot be overemphasized,” he stated, citing an African proverb to emphasize the significance of unity in achieving shared objectives.
Cardoso praised the CSNBFI’s efforts in advancing regulatory frameworks, specifically highlighting the recent adoption of the Model Act for Non-Bank Financial Institutions and Non-Bank Financial Holding Companies across the WAMZ. Approved in March 2024, this legislative milestone marks a crucial step towards harmonizing supervisory practices and enhancing the financial sector’s resilience.
Addressing emerging trends, Cardoso noted the growing role of fintech innovations and their implications for financial stability. “Fintech loans and digital platforms are reshaping financial intermediation,” he remarked, urging supervisors to strengthen their cybersecurity frameworks and adopt risk-based supervisory approaches to mitigate associated risks.
Cardoso also emphasized the importance of climate risk regulation, acknowledging the sector’s vulnerability to environmental changes and the need for tailored regulatory responses aligned with global standards.
He encouraged delegates to use the platform for knowledge exchange and collaboration, highlighting the importance of learning from each other’s experiences to navigate West Africa’s evolving financial landscape.
Mr. Yaw Sapong, Chairman of the College, welcomed the delegates and acknowledged the crucial role non-bank financial institutions play in promoting financial inclusion and economic growth. He noted the College’s achievements, including harmonized regulatory frameworks, automation of supervisory processes, and strengthened Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regimes.
Sapong emphasized the need for coordinated policy responses to address current economic challenges such as inflation and currency fluctuations. “We must continue to work together to build a resilient and inclusive financial sector that supports sustainable economic growth in our region,” he urged.
Dr. Olorunsola Olowofeso, Director General of WAMI, stressed the need to strengthen resilience in the financial sector, citing emerging risks such as climate-related threats, cyber risks, and the challenges of digitization. “We must continue to monitor policy actions and spillovers to ensure the financial system is resilient,” he advised.
Olowofeso reaffirmed WAMI’s commitment to implementing the WAMZ integration agenda.
The CSNBFI meeting aimed to review the progress made in the non-bank financial institution sector since late 2023 and to develop strategies to address current challenges. Discussions encompassed regulatory harmonization, cybersecurity, and the impact of digital innovations on financial services.
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