Central banks of West African countries must ensure that regulatory requirements are tailor-made to foster compliance with international standards, the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.

Speaking yesterday in Abuja at the 10th meeting of the College of Supervisors for Non-Bank Financial Institutions of the West African Monetary Zone, Cardoso said it is important for the meeting to focus on climate risk regulation during the technical sessions.

He noted that the non-bank financial institutions (NBFIs) might be small, but that the sub-sector must not be excused from global best practices.

Cardoso declared that the NBFI sector is an important component of the financial ecosystem and a key part of the strategy for the West African Monetary Zone.

He lauded the CSNBFI for developing a model act for NBFI and non-bank financial holding companies of the West African Monetary Zone, which was approved in March 2024.

While the CBN helmsman lauded the milestones the CSNBFI has achieved, he charged the body to continue to pursue the agenda of strengthening the anti-money laundering practices, deepening supervisory capacity on cybersecurity and fintech as well as implementing risk-based supervisory approach.

Director General of the West African Monetary Institute (WAMI), Dr Olorunsola Olowofeso, urged stakeholders to anticipate the soft landing of global inflation to pre-pandemic levels, saying the region must also continue to monitor policy actions and spillovers to ensure the financial system is resilient.

“In the WAMZ, after turbulent years, the outlook is gradually improving. However, the funding squeeze persists as governments continue to grapple with financing shortages, high borrowing costs and impending debt repayments.

“Emerging risks to the financial system include climate-related risks, internet disruption, cyber and social media threats arising from the digitisation of financial services. To strengthen the resilience of the financial sector, member states should develop an adequate national cybersecurity strategy and appropriate regulatory and supervisory frameworks,” he explained.

Chairman, the College of Supervisors for Non-Bank Financial Institutions in the West African Monetary Zone (WAMZ), Yaw Sapong, said the gathering was a platform for the sub-region to stay abreast of developments within the subsector, discuss issues of supervisory concern and share experiences.