By Angeline Mgbele, Bureau Chief, Northern Nigeria
The Director-General of the National Information Technology Development Agency (NITDA), Mallam Kashifu Inuwa Abdullahi Kashifu Inuwa, has said the next phase of growth for Nigeria’s banking sector will be driven less by capital accumulation and more by the ability of financial institutions to build digital trust through artificial intelligence (AI), regulatory technology (RegTech) and cyber resilience.
Speaking during a panel session titled “The Efficiency Frontier – AI, RegTech and Cyber Resilience” at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Mallam Abdullahi argued that while Nigeria’s banking industry had successfully weathered major reforms over the past two decades, the emerging threats confronting the sector required a different approach.
Abdullahi noted that the industry had repeatedly demonstrated resilience through landmark milestones such as the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise. According to him, the priority had now shifted from simply raising capital to ensuring that such capital was protected and sustained in an increasingly digital economy.
“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,” he said.
Abdullahi observed that digital channels had become the primary point of interaction between banks and customers, making technology resilience, cybersecurity and uninterrupted service delivery essential to maintaining public confidence in the financial system.
He described artificial intelligence as a strategic tool capable of transforming banking operations by improving productivity, strengthening decision-making, boosting revenue and delivering personalised financial services that reflected the expectations of digitally connected customers.
The NITDA DG also highlighted the growing importance of regulatory technology, saying its adoption could simplify compliance, lower operational costs, improve transparency and strengthen governance across financial institutions.
According to him, effective regulation must evolve alongside innovation. He explained that NITDA combined formal regulatory instruments with collaborative, innovation-friendly approaches that allowed emerging technologies to develop while regulators established 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.
Using Nigeria’s thriving fintech ecosystem as an example, Abdullahi said technology had fundamentally changed the delivery of financial services by enabling customers to open accounts, access banking products and carry out transactions remotely without visiting physical branches.
He further called for closer collaboration among regulators to improve access to finance for Small and Medium-sized Enterprises (SMEs). He explained that AI-powered credit assessment and digital financial management tools could help financial institutions better understand business performance, reduce lending risks and expand credit to underserved enterprises.
On responsible AI adoption, Abdullahi disclosed that NITDA’s National Artificial Intelligence Strategy provided a framework for deploying AI across critical sectors in partnership with sector regulators, including the Central Bank of Nigeria (CBN) for financial services.
He added that the Agency was also developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure that sensitive national and financial data remained adequately protected.
The NITDA boss concluded that deeper collaboration among regulators, technology innovators and financial institutions would be critical to building a secure, resilient and globally competitive financial ecosystem that supported sustainable economic growth.
