Africa needs strong banks, green growth, says CBN

Central Bank of Nigeria Governor, Mr. Olayemi Cardoso, has said African countries must pursue economic growth, industrial development and job creation while also dealing with climate challenges that threaten long-term stability and prosperity.

In his keynote at the Egypt 30by30 Programme organised by the Central Bank of Egypt and the International Finance Corporation (IFC), where he spoke on the need for Africa to combine economic progress with environmental responsibility, Cardoso said Africa must expand opportunities for its citizens and lift millions out of poverty while at the same time reducing carbon emissions and building strong systems that can withstand climate shocks. According to him, the vision behind the 30by30 initiative reflects a shared determination across the continent to create an Africa that is economically stable, environmentally responsible and prepared for future risks.

A statement from the CBN said Cardoso explained that through cooperation with the Central Bank of Egypt and other partners within the World Bank Group, Nigeria’s central bank remains committed to building a strong and risk-conscious financial system.

He said the effort includes promoting green finance, strengthening financial cooperation among African countries and ensuring that the continent’s economies are prepared not just to survive global disruptions but to grow despite them.

Speaking on the importance of trust in economic management, the CBN governor said resilience begins with credibility. “In Nigeria, disciplined and transparent reforms are strengthening macroeconomic fundamentals and boosting confidence in the financial system, laying the groundwork for sustainable growth,” he said. He added that strong financial systems depend on institutions people can trust, policies that are reliable, markets that are open and innovations that properly consider risks.

Cardoso warned that climate change is no longer only an environmental matter but also a financial one. “Climate risk is financial risk. It affects sovereign ratings, cost of capital, inflation dynamics, food security, insurance markets, and fiscal sustainability,” he said. He explained that climate-related problems such as droughts, floods and extreme weather can affect government finances, raise borrowing costs and disrupt food production, making it harder for countries to maintain stable economies.

He noted that although Africa contributes the least to global emissions, it suffers some of the worst consequences of climate change. Despite this challenge, he said the continent also has major advantages that can support its development, including vast renewable energy resources, rich biodiversity, a youthful population and fast-growing financial markets.

According to him, African countries must work together to turn these strengths into real economic progress. “To seize these opportunities, we must innovate for resilience, not as isolated nations, but as a continent. By working together deliberately, transparently, and with unwavering commitment, we can build the resilient, sustainable, and inclusive financial systems that Africa needs not only to withstand future shocks but also to thrive in the decades ahead,” he said.

Cardoso said the discussions at the programme point to a clear message for policymakers across Africa: the continent’s financial future depends on pursuing stability and sustainability at the same time. He explained that economic growth without environmental responsibility could create new risks, while climate action without strong economic systems could slow development.

He said Africa’s path forward requires policies that encourage investment, support innovation and strengthen financial institutions while also protecting the environment and preparing for climate-related risks. According to him, this balanced approach will allow African countries to build stronger economies, attract investment and improve living standards for their citizens.

The CBN governor concluded that cooperation among African nations, financial institutions and development partners will be essential in building a future where the continent’s economies are stable, resilient and capable of sustained growth despite global uncertainties.