The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has declared that the future of Nigeria’s banking industry will be determined not by the volume of capital banks hold, but by their ability to build digital trust through artificial intelligence (AI), regulatory technology (RegTech) and robust cybersecurity.
Speaking at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Inuwa stressed that the financial sector has entered a new era where resilience, innovation and secure digital infrastructure have become the true drivers of sustainable growth.
During a panel session themed “The Efficiency Frontier :AI, RegTech and Cyber Resilience,” the NITDA boss noted that while Nigeria’s banking industry has successfully navigated landmark reforms,including the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise,the challenges of today’s digital economy demand a different strategy.
According to him, the focus has shifted beyond raising capital to protecting, preserving and growing it through trusted digital systems.
“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,” Inuwa stated.
He observed that with digital platforms now serving as the primary touchpoints between banks and customers, uninterrupted service delivery, cyber resilience and secure digital infrastructure have become essential for maintaining public confidence in the financial system.
Highlighting the transformative role of Artificial Intelligence, Inuwa described AI as a game-changing technology capable of improving operational efficiency, enhancing decision-making, increasing revenue opportunities and delivering personalised financial services that align with the evolving expectations of today’s digital consumers.
He also underscored the strategic importance of Regulatory Technology (RegTech), noting that its adoption can streamline compliance processes, reduce operational costs, strengthen corporate governance and improve transparency across financial institutions.
Addressing the regulatory landscape, Inuwa explained that NITDA has embraced a balanced approach by combining regulatory oversight with innovation-friendly frameworks that allow emerging technologies to thrive while ensuring adequate consumer protection.
“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,” he said.
Using Nigeria’s vibrant fintech ecosystem as an example, the NITDA DG noted that technology has fundamentally transformed financial service delivery, enabling customers to open accounts, access banking services and complete transactions remotely without visiting physical branches.
He further advocated stronger collaboration among regulators to improve access to finance for Small and Medium-sized Enterprises (SMEs). According to him, AI-powered credit assessment systems and digital financial management tools can provide financial institutions with better insights into business performance, reduce lending risks and expand credit access for underserved businesses.
On responsible AI deployment, Inuwa disclosed that NITDA’s National Artificial Intelligence Strategy provides a comprehensive framework for the safe adoption of AI across critical sectors in collaboration with industry regulators, including the Central Bank of Nigeria (CBN) for the financial services sector.
He also revealed that the Agency is developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and safeguard sensitive national and financial data.
Inuwa concluded by calling for stronger partnerships among regulators, financial institutions and technology innovators, emphasizing that sustained collaboration will be key to building a secure, resilient and globally competitive financial ecosystem capable of driving Nigeria’s long-term economic growth.
