The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, has called for a fundamental overhaul of Nigeria’s financial regulatory framework, warning that traditional supervisory tools can no longer adequately manage the complexities of modern banking.
Inuwa said financial stability is now inseparable from digital stability, stressing that the rapid evolution of banking into a technology-driven ecosystem requires regulators to adopt real-time supervision, stronger cross-sector collaboration, digital sovereignty and enhanced operational resilience.
He made the submission while speaking 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.
The retreat was themed “From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability.”
According to the NITDA DG, the transformation of banking from physical branches to internet and mobile banking, fintech platforms and embedded financial services has rendered several conventional supervisory models inadequate.
“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.
Inuwa explained that modern financial services now depend on an interconnected ecosystem comprising telecommunications infrastructure, cloud platforms, digital marketplaces, fintech companies, data systems and emerging technologies.
He therefore urged regulators to move beyond monitoring individual financial institutions and develop an ecosystem-wide approach capable of identifying and responding to risks across the entire digital financial infrastructure.
He said regulators must also develop real-time visibility into the sector instead of relying primarily on periodic returns submitted by regulated institutions.
“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 stated.
The NITDA chief also drew a distinction between digitalisation and digital transformation, noting that while digitalisation involves improving existing processes with technology, digital transformation requires institutions to rethink their business models, operating structures and value propositions.
He urged financial institutions and regulators to embrace ecosystem-driven innovation capable of responding to rapidly changing technological realities.
On operational resilience, Inuwa said the concept must extend beyond conventional cybersecurity measures to include 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 a major emerging risk, warned that disruptions affecting cloud services, telecommunications infrastructure and digital platforms could trigger consequences across the wider financial ecosystem.
The NITDA DG also raised concerns over AI-driven cyber threats, stressing that while artificial intelligence should be deployed as a tool for cyber defence, AI-powered systems themselves must be protected against manipulation and compromise.
He further called for increased investment in local digital talent and institutional capacity, describing human capital development as critical to Nigeria’s long-term financial and technological resilience.
Inuwa linked financial stability to digital sovereignty, arguing that Nigeria must retain meaningful control over the critical digital infrastructure underpinning its economy.
“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 concluded by urging policymakers to adopt a system-wide approach to financial supervision, noting that future regulation must encompass not only banks and other regulated institutions but also the technologies, platforms, infrastructure and stakeholders that collectively sustain modern financial services.
“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 stated.
In his keynote address delivered virtually, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, assured staff that the apex bank was in a strong position following its ongoing reform programme.
Cardoso said the CBN’s transformation agenda was designed to strengthen the institution while protecting the interests and career progression of its professional workforce.
He urged staff to remain confident about the future, stressing that the ultimate measure of reform was its ability to become embedded in an institution’s culture, systems and processes long after its initiators had left office.
“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.
The governor highlighted the completion of a bank-wide culture survey, which allowed staff across the institution to contribute to shaping its future.
He described institutional culture as the foundation of sustainable reform and said staff feedback would continue to inform meaningful changes within the bank.
Cardoso also commended employees for the CBN’s recent international recognition, describing the achievement as a reflection of the dedication, professionalism and commitment of staff across departments and locations.
He charged directors to empower their teams, encourage constructive engagement and strengthen collaboration across departments to build a more resilient and future-ready institution.
The Chairman of the CBN Committee of Departmental Directors, Jimoh Musa Itoba, charged directors to take greater responsibility for driving financial stability and supporting Nigeria’s economic growth.
Describing directors as the institution’s “major anchors”, Itoba said they were custodians of the CBN’s processes, culture and institutional memory.
He said the retreat provided an opportunity for directors to critically examine the bank’s role in advancing the economy and contributing to Nigeria’s ambition of becoming a one-trillion-dollar economy.
“The directors are the major anchors of the Bank,”he said, noting that employees looked to them for leadership, direction and confidence.
Itoba urged participants to challenge existing narratives, examine current practices and develop practical solutions that management could implement to strengthen financial system stability and public confidence.
“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,”he added.
Earlier, the Secretary of the Committee of Departmental Directors, Rashida Monguno, urged CBN directors to embrace innovation, strategic thinking and stronger collaboration as the institution responds to emerging challenges.
Monguno said the rapidly changing operating environment required continuous performance reviews and bold solutions, adding that the retreat provided an opportunity for the bank to assess its progress, identify gaps and develop innovative approaches to improve effectiveness, efficiency and service delivery.
She encouraged participants to leverage their collective expertise to generate fresh ideas, share best practices and chart 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 coordination across departments.
She urged the directors to approach the engagement with teamwork, commitment to excellence and dedication to national development, describing the retreat as an opportunity to reinforce collective responsibility for building a stronger and more responsive Central Bank.
