Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has warned that climate change poses a direct financial threat to African economies, with far-reaching implications for sovereign ratings, cost of capital, inflation, food security, insurance markets and fiscal sustainability.

Speaking in Cairo at the Egypt 30by30 Programme organised by the Central Bank of Egypt and the International Finance Corporation (IFC), Cardoso said climate risk must no longer be treated as an environmental issue alone, stressing that it has become a core financial stability concern for the continent.

He said, “Climate risk is financial risk. It affects sovereign ratings, cost of capital, inflation dynamics, food security, insurance markets and fiscal sustainability.”

He noted that although Africa contributes the least to global climate change, it bears some of the highest costs. According to him, the reality makes it urgent for African central banks and development finance institutions (DFIs) to act deliberately and collectively.

Cardoso said Africa must grow, industrialise, create jobs, expand opportunities and lift millions out of poverty, even as it decarbonises and builds climate resilience.

He added that the ambition behind the 30by30 initiative reflects a shared continental vision that Africa’s future must be resilient, climate-aware and economically sustainable.

Cardoso stressed that resilience begins with credibility, noting that disciplined and transparent reforms in Nigeria are strengthening macroeconomic fundamentals and restoring confidence in the financial system.