The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has said Nigeria’s banking industry must look beyond capital accumulation and embrace artificial intelligence (AI), regulatory technology (RegTech) and cyber resilience to remain competitive in an increasingly digital economy.
Speaking at the Future of Banking Nigeria Summit organized by CNBC Africa in Lagos, Inuwa said the sector’s future growth would depend on its ability to build digital trust by protecting financial systems, strengthening cybersecurity and adopting innovative technologies.
He spoke during a panel session titled “The Efficiency Frontier AI, RegTech and Cyber Resilience,” moderated by Dr. Ayotunde Coker, Chief Executive Officer of Open Access Data Centres (OADC).
According to Inuwa, Nigeria’s banking industry has demonstrated remarkable resilience through major reforms, including the 2005 banking consolidation, the 2009 banking reforms and the ongoing banking recapitalisation exercise. However, he said the industry’s biggest challenge has shifted from raising capital to protecting and growing it in the digital age.
“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,” he said. “Trust has become the foundation of modern banking, and that trust must be be built on resilient digital infrastructure and effective regulation.”
He noted that as digital banking channels increasingly become the primary point of interaction between banks and customers, technology resilience, cybersecurity and uninterrupted service delivery are now essential for sustaining confidence in the financial system.
Inuwa described AI as a strategic enabler that can improve operational efficiency, enhance decision-making, increase revenue and deliver more personalised financial services. He added that the growing adoption of RegTech solutions would simplify regulatory compliance, reduce operational costs, strengthen governance and improve transparency across the banking sector.
The NITDA Director General stressed that regulation must evolve alongside technological innovation, noting that the Agency adopts a collaborative approach that allows emerging technologies to develop while regulators establish appropriate standards and safeguards.
“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.
Highlighting Nigeria’s expanding fintech ecosystem, Inuwa said technology has transformed financial service delivery by enabling customers to open accounts, access banking services and conduct transactions remotely without visiting physical branches.
He also called for stronger collaboration among regulators to improve access to finance for small and medium-sized enterprises (SMEs), noting that AI-powered credit assessment and digital financial management tools can help financial institutions better evaluate businesses, reduce lending risks and expand credit to underserved enterprises.
On responsible AI adoption, Inuwa said NITDA’s National Artificial Intelligence Strategy provides a framework for deploying AI across critical sectors in partnership with regulators, including the Central Bank of Nigeria (CBN).
He disclosed that the Agency is also developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure the protection of sensitive national and financial data.
Inuwa said deeper collaboration among regulators, technology companies and financial institutions would be critical to building a secure, resilient and globally competitive financial ecosystem capable of supporting sustainable economic growth.
