The International Monetary Fund (IMF) has lauded the Central Bank of Nigeria (CBN) for its decision to raise the minimum capital requirements for banks in the country. This endorsement came alongside the release of the IMF’s Executive Board Conclusion of the 2024 Article IV Consultation with Nigeria. Additionally, the IMF projected that Nigeria’s Consumer Price Index (CPI), which measures inflation, is anticipated to reach 24 percent by the end of the year.
According to the IMF, the CPI is forecasted to average 26.3 percent for the current year and 23 percent for the subsequent year. The IMF underscored the necessity for vigilant monitoring of financial sector risks and expressed support for the CBN’s initiative to increase the minimum capital for banks. Furthermore, the IMF urged the CBN to phase out the regulatory forbearance introduced during the pandemic period.
Acknowledging recent improvements in Nigeria’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework, the IMF directors called for sustained efforts to remove Nigeria from the Financial Action Task Force (FATF) grey list. Additionally, they endorsed the government’s endeavors to promote financial inclusion and deepen the capital market.
In emphasizing the significance of reforms, the IMF directors highlighted the need to enhance the business environment, address security challenges, implement key governance measures, enhance human capital development, boost agricultural productivity, and fortify climate resilience.
