The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has declared that the future growth of Nigeria’s banking industry will rely less on capital accumulation and more on financial institutions' ability to build digital trust. This trust will be fostered through artificial intelligence (AI), regulatory technology (RegTech), and robust cyber resilience.
Inuwa made these remarks during a panel session titled “The Efficiency Frontier – AI, RegTech and Cyber Resilience” at the Future of Banking Nigeria Summit, organized by CNBC Africa in Lagos. He emphasized that the country’s banking sector has entered a new phase where technology resilience and customer trust are critical drivers of competitiveness.
Digital Trust as the New Foundation
According to Inuwa, while the industry has successfully navigated major reforms over the past two decades, including the 2005 banking consolidation and the 2009 banking reforms, emerging digital risks now necessitate banks to rethink how they protect assets, customers, and financial systems. He noted that the industry's challenge has evolved from raising capital to safeguarding and growing it in an increasingly digital economy.
Inuwa stated, “Today’s question is no longer whether we can raise capital, but whether we can protect, preserve and grow that capital in the digital era. Trust has become the foundation of modern banking, and that trust must be built on resilient digital infrastructure and effective regulation.” With digital channels now serving as the primary interface between banks and customers, uninterrupted service delivery, cybersecurity, and resilient technology infrastructure are essential for maintaining confidence in the financial system.
Leveraging AI and RegTech for Growth
The NITDA boss described artificial intelligence as a strategic technology capable of significantly improving banking operations. AI can enhance productivity, strengthen decision-making, increase revenue, and enable more personalized financial services. He also highlighted the growing role of regulatory technology, explaining that RegTech solutions can simplify compliance processes, reduce operational costs, improve transparency, and strengthen corporate governance across financial institutions.
Inuwa stressed that regulators must adapt quickly as technology continues to evolve. He said, “Technology evolves much faster than traditional regulation. Regulators must work closely with innovators to create enabling frameworks that encourage innovation while protecting consumers and maintaining market confidence.” Using Nigeria’s expanding fintech ecosystem as an example, Inuwa noted that technology has fundamentally changed how financial services are delivered, allowing customers to open accounts, access banking products, and complete transactions remotely without visiting bank branches.
He added that closer collaboration among regulators could also improve access to finance for small and medium-sized enterprises (SMEs). AI-powered credit assessment tools and digital financial management platforms can help banks better evaluate business performance, reduce lending risks, and expand financing to underserved businesses.
NITDA's Strategic Initiatives
On responsible AI adoption, Inuwa disclosed that NITDA’s National Artificial Intelligence Strategy provides a framework for deploying AI across critical sectors in collaboration with relevant regulators, including the Central Bank of Nigeria (CBN) for financial services. He added that the agency is also developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure sensitive national and financial data are adequately protected.
Inuwa concluded that stronger collaboration among regulators, technology innovators, and financial institutions would be essential to building a secure, resilient, and globally competitive financial ecosystem capable of supporting Nigeria’s long-term economic growth. Last year, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, unveiled Nigeria’s National Artificial Intelligence (AI) Strategy to accelerate AI development, productivity, and economic growth across sectors. The government is funding research and partnering with private sector players to enable growth in the sector.
