The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has said the future of Nigeria’s banking industry will be determined not by capital accumulation alone, but by the ability of financial institutions to build digital trust through artificial intelligence (AI), regulatory technology (RegTech) and cyber resilience.
Speaking at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Inuwa said the banking sector has successfully navigated major reforms, including the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise. However, he stressed that the industry’s next challenge is safeguarding and growing capital in an increasingly digital economy.
According to him, trust has become the cornerstone of modern banking and must be anchored on resilient digital infrastructure, robust cybersecurity and effective regulation.
“The question today is no longer whether banks can raise capital, but whether they can protect, preserve and grow that capital in the digital era,” he said.
Inuwa noted that with digital platforms now serving as the primary interface between banks and customers, uninterrupted service delivery and strong cyber resilience have become critical to maintaining public confidence.
He described artificial intelligence as a transformative tool capable of improving operational efficiency, enhancing decision-making, increasing revenue and delivering personalised financial services that meet the expectations of today’s digitally connected customers.
The NITDA boss also underscored the importance of RegTech in simplifying regulatory compliance, reducing operational costs, improving transparency and strengthening governance within financial institutions.
He emphasised that regulation must keep pace with technological innovation, explaining that NITDA adopts a collaborative approach that combines formal regulation with innovation-friendly frameworks to encourage emerging technologies while ensuring consumer protection and market stability.
“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.
Citing Nigeria’s vibrant fintech ecosystem, Inuwa said technology has transformed financial service delivery by enabling customers to open accounts, access banking services and carry out 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 lenders 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 collaboration with regulators, including the Central Bank of Nigeria (CBN).
He added that the Agency is developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure sensitive national and financial data remain secure.
Inuwa concluded that sustained collaboration among regulators, technology innovators and financial institutions will be essential to building a secure, resilient and globally competitive financial ecosystem capable of driving sustainable economic growth.
