The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has said the future growth of Nigeria’s banking industry will depend less on capital accumulation and more on the ability of financial institutions to build digital trust through artificial intelligence (AI), regulatory technology (RegTech), and cyber resilience.
Inuwa made the remarks 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 Nigeria’s banking sector has entered a new era where technology resilience, cybersecurity, and customer confidence have become key determinants of long-term competitiveness.
What the data is saying
The NITDA Director General’s comments reflect the rapid evolution of banking from a business driven primarily by capital strength and branch networks to one increasingly shaped by digital capabilities and technology infrastructure.
As more financial services migrate to digital platforms, banks are becoming more exposed to cyber threats, fraud, data breaches, and operational disruptions. This has elevated cybersecurity and technology resilience from back-office functions to strategic priorities that directly influence customer confidence and institutional reputation.
Inuwa’s emphasis on artificial intelligence and RegTech highlights two technologies expected to reshape banking operations. AI is increasingly being deployed for fraud detection, customer service automation, credit assessment, and risk management, while RegTech solutions help financial institutions automate compliance processes, improve regulatory reporting, and monitor transactions more efficiently.
The concept of digital trust extends beyond cybersecurity to include reliable digital services, responsible data management, privacy protection, and transparent use of emerging technologies such as AI. As digital banking adoption continues to rise, customer confidence in the security and reliability of financial platforms is becoming a critical competitive advantage.
The remarks also suggest that future investment priorities for banks may increasingly focus on technology infrastructure, cybersecurity capabilities, cloud computing, and AI-powered systems alongside traditional investments in physical expansion and financial capital.
What you should know
Nigeria’s banking industry has undergone significant transformation over the past two decades, driven by banking sector reforms, rapid fintech growth, widespread mobile banking adoption, and increasing digitalisation of financial services.
The expansion of digital financial services has improved financial inclusion and payment efficiency but has also increased exposure to cybercrime and sophisticated digital fraud, prompting regulators and financial institutions to strengthen cybersecurity frameworks and operational resilience.
NITDA has continued to advocate for the responsible adoption of emerging technologies, including artificial intelligence, while promoting stronger cybersecurity standards and digital governance. As banks accelerate their digital transformation strategies, investments in AI, RegTech, and cyber resilience are expected to play an increasingly important role in protecting customers, meeting regulatory requirements, and sustaining long-term growth.
