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Shift from Capital Raising to Digital Resilience
The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, has said the future growth of Nigeria’s banking sector will be defined 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.
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Speaking at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Abdullahi made the remarks during a panel session titled “The Efficiency Frontier – AI, RegTech and Cyber Resilience.”
Nigeria’s Banks Have Survived Reforms—A New Challenge Emerges
Abdullahi noted that Nigeria’s banking industry has demonstrated remarkable resilience over the past two decades, successfully navigating major milestones such as the 2005 consolidation, the 2009 reforms and the ongoing recapitalisation exercise.
However, he argued that the emerging risks of a digital economy demand a different mindset—one focused on protecting and sustaining capital rather than merely raising it.
“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,” he said. “Trust has become the foundation of modern banking, and that trust must be built on resilient digital infrastructure and effective regulation.”
Digital Channels Redefine Customer Trust
According to the NITDA boss, digital platforms have become the primary interface between banks and customers, making cybersecurity, system reliability and uninterrupted service delivery central to public confidence in the financial system.
He warned that as banking becomes increasingly digital, any weakness in technology resilience could directly undermine trust and stability across the sector.
AI as a Strategic Growth Engine
Abdullahi described artificial intelligence as a transformative tool capable of reshaping banking operations by improving productivity, enhancing decision-making, increasing revenue and delivering personalised financial services tailored to digitally savvy customers.
He added that AI-driven systems can help banks respond faster to market changes while maintaining operational efficiency and customer satisfaction.
RegTech and Smarter Compliance
Highlighting the growing role of regulatory technology, Abdullahi said RegTech adoption can simplify compliance processes, reduce operational costs, improve transparency and strengthen corporate governance within financial institutions.
He stressed that regulation must evolve in tandem with innovation, noting that NITDA blends formal regulatory instruments with collaborative, innovation-friendly approaches that allow emerging technologies to mature within appropriate safeguards.
“Technology evolves much faster than traditional regulation. Regulators must work closely with innovators to create frameworks that encourage innovation while protecting consumers and maintaining market confidence,” he said.
Fintech, Financial Inclusion and SME Growth
Using Nigeria’s expanding fintech ecosystem as an example, Abdullahi said technology has fundamentally transformed financial service delivery, enabling customers to open accounts, access services and conduct transactions remotely.
He called for stronger collaboration among regulators to expand access to finance for Small and Medium-sized Enterprises (SMEs), explaining that AI-powered credit assessment and digital financial management tools can reduce lending risks and unlock funding for underserved businesses.
Responsible AI and Digital Sovereignty
On responsible AI deployment, Abdullahi disclosed that NITDA’s National Artificial Intelligence Strategy provides a coordinated framework for AI adoption across critical sectors, in partnership with sector regulators such as the Central Bank of Nigeria (CBN).
He also revealed that NITDA is developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure sensitive financial and national data are adequately protected.
Collaboration as the Path Forward
Abdullahi concluded that deeper collaboration between regulators, technology innovators and financial institutions will be essential to building a secure, resilient and globally competitive financial ecosystem capable of supporting sustainable economic growth.
PHOTO: From left: Wole Famurewa, Ayotunde Coker, Managing Director, OADC; the Director General, NITDA, Abdullahi; Prof. Olayinka David West of Lagos Business School; and Femi Osinubi, Africa Advisory Leader, PwC, during the panel session.
