The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has called for a fundamental overhaul of financial sector supervision, warning that Nigeria’s financial stability can no longer be secured through traditional regulatory approaches as banking increasingly evolves into a complex digital ecosystem.
Inuwa said regulators must move beyond monitoring individual financial institutions to overseeing the wider network of technologies, platforms, infrastructure and service providers that now underpin modern finance.
He spoke on *“Digital Transformation, Supervision, Innovation and Operational Resilience”* at the 15th Retreat of the Central Bank of Nigeria (CBN) Committee of Departmental Directors in Lagos, with the theme, *“From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability.”*
He argued that the growth of digital banking, fintech, embedded finance and other technology-driven services had made digital stability inseparable from financial stability.
“To achieve financial stability, we need digital stability. Without digital stability, today we cannot be talking about financial stability in the financial sector,” he said.
According to the NITDA boss, the banking sector has moved from branch-based operations to internet and mobile banking, and now to digitally embedded financial services, producing a far more interconnected ecosystem than the one traditionally supervised by regulators.
He said financial services increasingly rely on telecommunications infrastructure, cloud platforms, digital marketplaces, fintech companies, data systems and emerging technologies, making an ecosystem-based approach to supervision imperative.
Inuwa also warned against continued reliance on periodic returns from regulated institutions, arguing that supervisors must have real-time visibility into developments across the financial ecosystem.
“We need to be ahead of the institutions we regulate. We cannot wait for regulated institutions to submit returns before we analyse and understand what is happening. We need end-to-end visibility of the ecosystem,” he said.
The NITDA director-general also drew a distinction between digitalisation and digital transformation, saying the former largely involves improving existing processes with technology, while the latter requires organisations to rethink their business models and create new forms of value.
He urged regulators and financial institutions to embrace ecosystem-driven innovation rather than merely automating existing processes, noting that the rapid pace of technological change required institutions to continually rethink how they operate.
On operational resilience, Inuwa said financial institutions must look beyond conventional cybersecurity measures to address third-party and fourth-party risks, cloud governance, data protection, artificial intelligence oversight and the sustainability of critical digital infrastructure.
He identified growing dependence on external technology providers as one of the major emerging risks to financial systems, warning that disruptions to cloud services, connectivity infrastructure or digital platforms could trigger consequences far beyond the affected service provider.
He also raised concerns over cyber threats associated with artificial intelligence, noting that AI systems themselves were increasingly becoming targets of sophisticated attacks.
He said regulators and financial institutions must therefore pursue a dual strategy of deploying artificial intelligence for cyber defence while simultaneously safeguarding AI-powered systems against manipulation and compromise.
Beyond infrastructure, Inuwa stressed the need for Nigeria to develop the human capacity and institutional expertise required to supervise an increasingly technology-dependent financial system.
He said a strong base of digital talent would be crucial to the country’s long-term financial resilience.
The NITDA chief further linked financial stability to digital sovereignty, arguing that countries must retain meaningful control over the digital infrastructure supporting critical sectors of their economies.
“Financial stability now depends on resilient technology and Nigeria’s capacity for digital self-determination. If we do not build, control and maintain sovereignty over critical digital infrastructure, how can we guarantee the stability and integrity of our financial system?” he asked.
He urged policymakers to adopt a system-wide approach to supervision, saying the future of regulation must focus not only on financial institutions but also on the broader ecosystem through which modern financial services are delivered.
“The future of supervision is not merely to digitise regulation, but to digitally transform how regulators sense, understand and respond to risks across the ecosystem,” Inuwa said.
He added that such an approach would help build a resilient, secure and sustainable financial system capable of supporting Nigeria’s digital economy ambitions.
Cardoso: CBN Reforms Will Protect Career Officers
In his keynote address delivered virtually, the CBN Governor, Olayemi Cardoso, assured staff that the apex bank was in a strong position following its ongoing reforms, stressing that the transformation agenda was intended to strengthen the institution and protect career officers.
“The Bank is in a good place,” Cardoso said, urging employees to remain confident in the future of the institution.
He said the success of any reform would ultimately depend on its ability to become embedded in the organisation’s culture, systems and processes long after those who initiated it had left office.
Cardoso said the CBN had recorded progress in several strategic areas, including the completion of a bank-wide culture survey that provided staff with an opportunity to contribute to shaping the institution’s future.
He described institutional culture as the foundation of lasting reform and pledged that feedback from employees would continue to inform action.
The governor also highlighted the bank’s recent international recognition, describing it as a reflection of the dedication and professionalism of employees across its departments and locations.
He stressed that the recognition belonged to the entire workforce rather than the leadership alone.
Addressing concerns that reforms could threaten career progression, Cardoso said the opposite was the case, arguing that institutionalisation would provide greater security and stability for career officers.
“The Bank is in a good place. Our staff have nothing to fear. Reform and institutionalisation are not a threat to the career officer; they are the protection of the career officer,” he said.
He charged directors to empower their teams, promote constructive engagement and strengthen collaboration across departments, saying a resilient and future-ready CBN would depend on the collective professionalism, integrity and commitment of its people.
Directors Must Anchor Financial Stability, Itoba Says
The Chairman of the CBN Committee of Departmental Directors, Jimoh Musa Itoba, charged directors to assume greater responsibility for strengthening financial stability and supporting Nigeria’s economic growth.
He described directors as the institution’s “major anchors” and custodians of its processes, culture and institutional memory.
Itoba said the retreat offered an opportunity to critically examine the role of the CBN in advancing the economy and supporting Nigeria’s ambition of becoming a one-trillion-dollar economy.
“The directors are the major anchors of the Bank,” he said, noting that the actions and conduct of directors significantly influence institutional culture, employee confidence and the effectiveness of the apex bank.
He urged participants to question established narratives, engage openly and focus on practical solutions that management could implement to strengthen financial system stability and public trust.
“Let us be committed, let us get engaged, and make sure that at the end of this retreat, we are not only questioning what we do today but also providing solutions that management can implement,” Itoba said.
Monguno Seeks Innovation, Collaboration
Earlier, the Secretary of the Board, Committee of Departmental Directors, Rashida Monguno, called on directors to embrace innovation, strategic thinking and stronger collaboration as the CBN responds to emerging challenges.
Monguno said the rapidly changing operating environment required continuous performance reviews and bold solutions, stressing that the bank must regularly assess its progress, identify gaps and develop innovative approaches to improve effectiveness, efficiency and service delivery.
She urged participants to use the retreat to draw on their collective expertise, exchange ideas and share best practices while developing a clear path for the institution.
“The success of our initiatives will depend on our willingness to collaborate, think strategically and remain focused on achieving measurable outcomes,” she said.
Monguno expressed confidence that the retreat would produce recommendations capable of strengthening institutional performance and improving coordination across departments.
She also urged participants to approach the engagement with teamwork, commitment to excellence and a strong sense of responsibility towards national development, describing the retreat as an opportunity to foster innovation and build a more responsive central bank.
