The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, has called for real-time supervision of Nigeria’s digital financial ecosystem, saying traditional regulatory approaches are no longer sufficient to guarantee financial stability.
Inuwa made the call while speaking on “Digital Transformation, Supervision, Innovation and Operational Resilience” at the 15th Retreat of the Central Bank of Nigeria Committee of Departmental Directors in Lagos.
The retreat, themed “From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability,” focused on strengthening the capacity of the apex bank to respond to emerging risks and sustain financial system stability.
According to Inuwa, the rapid transformation of banking from physical branches to internet and mobile banking, fintech platforms and embedded financial services has created a complex ecosystem that requires regulators to adopt a broader and more proactive supervisory approach.
He said financial regulators must move beyond monitoring individual institutions and develop end-to-end visibility of the digital infrastructure, platforms and service providers that collectively power modern financial services.
“To achieve financial stability, we need digital stability. Without digital stability, today we cannot be talking about financial stability in the financial sector,” Inuwa said.
The NITDA boss said regulators could no longer rely solely on periodic returns submitted by financial institutions, stressing that real-time monitoring was necessary to identify and respond to risks before they escalate.
“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.
He explained that the modern financial ecosystem now depends on telecommunications infrastructure, cloud platforms, digital marketplaces, fintech companies, data systems and emerging technologies, making collaboration among regulators and stakeholders increasingly important.
Inuwa also urged financial institutions and regulators to distinguish between digitalisation and digital transformation, noting that digitalisation largely involves improving existing processes with technology, while digital transformation requires organisations to develop new operating models and value propositions.
He called for ecosystem-driven innovation that would enable regulators and financial institutions to respond more effectively to rapid technological changes.
On operational resilience, Inuwa said financial stability could be threatened by risks originating outside conventional banking systems, particularly as institutions increasingly depend on external technology providers.
He identified third-party and fourth-party risks, cloud governance, data protection, artificial intelligence and the sustainability of digital infrastructure as areas requiring greater regulatory attention.
According to him, disruptions to cloud services, connectivity infrastructure or other critical digital platforms could have consequences across the entire financial system.
Inuwa also warned about the growing sophistication of cyber threats driven by artificial intelligence, stressing that institutions must deploy AI for defence while simultaneously protecting AI-powered systems against manipulation and compromise.
He emphasised the importance of developing local digital talent and institutional capacity, saying Nigeria’s ability to supervise and protect its increasingly technology-dependent financial system would depend significantly on the availability of the required skills.
The NITDA Director General further linked financial stability to digital sovereignty, arguing that Nigeria must retain meaningful control over critical digital infrastructure supporting 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 said the future of financial supervision must focus on the entire ecosystem rather than regulated institutions alone.
“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.
Meanwhile, the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, who addressed participants virtually, assured staff that the apex bank was in a strong position following ongoing reforms.
Cardoso said the CBN’s transformation agenda was designed to strengthen the institution while protecting career officers, stressing that the sustainability of reforms depended on their integration into the Bank’s culture, systems and processes.
“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 as part of the Bank’s reform efforts and said staff feedback would continue to inform its institutional development.
He also commended employees for the CBN’s recent international recognition, describing the achievement as a reflection of the dedication and professionalism of staff across the institution.
Cardoso urged directors to empower their teams, encourage constructive engagement and strengthen collaboration across departments, noting that a resilient and future-ready CBN would depend on the collective efforts of its workforce.
The Chairman, Committee of Departmental Directors of the CBN, Mr. Jimoh Musa Itoba, charged directors to take greater responsibility for driving financial stability and supporting Nigeria’s economic growth.
Itoba described the directors as the “major anchors” of the Bank and custodians of its processes, culture and institutional memory.
“The directors are the major anchors of the Bank,” he said, stressing that their leadership and actions significantly influence the institution’s culture, effectiveness and credibility.
He urged participants to challenge existing narratives and focus on practical solutions capable of strengthening 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.
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 changing operating environment required continuous performance reviews and bold solutions, urging participants to leverage their expertise to generate fresh ideas, share best practices and develop recommendations that would improve the Bank’s effectiveness and service delivery.
“The success of our initiatives will depend on our willingness to collaborate, think strategically and remain focused on achieving measurable outcomes,” she said.
She expressed confidence that the retreat would strengthen institutional performance and coordination across departments while reinforcing the collective responsibility of CBN directors to national development.
