The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has said the future growth and competitiveness of Nigeria’s banking industry will depend less on capital accumulation and more on the adoption of artificial intelligence (AI), regulatory technology (RegTech) and robust cyber resilience.
Inuwa made the assertion while 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.
He noted that although Nigeria’s banking industry has successfully navigated major reforms over the past two decades, including the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise, the sector now faces a new challenge of safeguarding capital in an increasingly digital economy.
According to him, the focus has shifted from merely raising capital to protecting, preserving and growing it through resilient digital infrastructure, effective regulation and enhanced cybersecurity.
“The question today 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.
The NITDA Director-General observed that digital platforms have become the primary interface between banks and their customers, making uninterrupted service delivery, cyber resilience and technology reliability critical to sustaining public confidence in the financial system.
He described artificial intelligence as a strategic enabler capable of transforming banking operations through improved productivity, enhanced decision-making, increased revenue generation and the delivery of personalised financial services tailored to the expectations of digitally connected customers.
Inuwa also underscored the growing importance of regulatory technology, noting that RegTech solutions can simplify compliance processes, reduce operational costs, improve transparency and strengthen corporate governance across financial institutions.
He stressed that regulatory frameworks must evolve alongside technological innovation, explaining that NITDA adopts a balanced approach by combining formal regulations with collaborative, innovation-friendly mechanisms that encourage technological advancement while ensuring adequate safeguards for consumers and the financial system.
“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 stated.
Using Nigeria’s vibrant fintech ecosystem as an example, Inuwa said technological innovation has fundamentally transformed financial service delivery by enabling customers to open accounts, access banking products and conduct transactions remotely without visiting physical bank branches.
He further 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 solutions could enable financial institutions to better evaluate business performance, reduce lending risks and expand credit to underserved enterprises.
On responsible AI deployment, Inuwa disclosed that NITDA’s National Artificial Intelligence Strategy provides a framework for the adoption of AI across critical sectors in collaboration with sector regulators, including the Central Bank of Nigeria for the financial services industry.
He added 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 concluded that stronger collaboration among regulators, technology innovators and financial institutions would be essential to building a secure, resilient and globally competitive financial ecosystem capable of driving sustainable economic growth.
