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The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has called for a fundamental rethink of Nigeria’s financial sector regulatory framework, warning that traditional supervisory tools can no longer adequately address the risks associated with modern digital banking.
Inuwa made the call 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.”
Inuwa said the evolution of banking from physical branches to internet and mobile banking, fintech platforms and embedded finance had created a complex digital ecosystem that required a new approach to regulation.
According to him, regulators must move beyond monitoring individual financial institutions and begin to oversee the wider ecosystem of technologies, platforms and infrastructure powering modern financial services.
He said financial stability could no longer be separated from digital stability.
“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.
The NITDA boss noted that modern financial services increasingly depend on telecommunications infrastructure, cloud platforms, digital marketplaces, fintech companies, data systems and emerging technologies.
He therefore urged regulators to develop real-time visibility across the financial ecosystem rather than relying mainly 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 said.
Inuwa also distinguished between digitalisation and digital transformation, explaining that while digitalisation focuses on improving existing processes through technology, digital transformation requires organisations to rethink their business models and create new value propositions.
He urged regulators and financial institutions to embrace ecosystem-driven innovation capable of responding to rapidly changing technological realities.
On operational resilience, Inuwa said financial institutions must look beyond conventional cybersecurity frameworks to address third-party and fourth-party risks, cloud governance, data protection, artificial intelligence oversight and digital infrastructure sustainability.
He identified growing dependence on external technology providers as one of the major emerging risks facing financial systems, noting that disruptions to cloud services, connectivity infrastructure or digital platforms could have far-reaching consequences across the financial ecosystem.
The NITDA director-general also raised concerns about cyber threats driven by artificial intelligence, warning that AI systems were increasingly becoming targets for sophisticated attacks.
He said institutions must deploy AI to strengthen cyber defence while simultaneously protecting AI-powered systems from manipulation and compromise.
Inuwa further emphasised the need to develop local digital talent and institutional capacity to strengthen supervision and build Nigeria’s long-term financial resilience.
He linked financial stability to digital sovereignty, arguing that countries must retain meaningful control over the digital infrastructure supporting critical sectors of their economies.
“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 urged policymakers to adopt a system-wide approach to supervision by focusing not only on regulated financial institutions but also on the technologies, platforms, infrastructure and stakeholders that collectively sustain modern banking.
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“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 said.
Speaking virtually at the retreat, the CBN Governor, Olayemi Cardoso, assured staff that the apex bank was in a strong position following its ongoing reforms.
Cardoso said the transformation agenda was designed to strengthen the institution while protecting the interests and career progression of its officers.
“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 said the CBN had recorded progress in several strategic areas, including the completion of a bank-wide culture survey which provided staff with an opportunity to contribute to shaping the institution’s future.
He described culture as the foundation of lasting reforms and said staff feedback would continue to drive meaningful action.
Cardoso also commended the bank’s recent international recognition, describing it as a reflection of the dedication, professionalism and commitment of its workforce.
He urged directors to empower their teams, encourage constructive engagement and strengthen collaboration across departments.
The Chairman of the Committee of Departmental Directors, 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 CBN and custodians of its processes, culture and institutional memory.
He said the retreat was an opportunity to critically examine how the apex bank could contribute to advancing the economy and achieving Nigeria’s aspiration of becoming a $1 trillion economy.
“The directors are the major anchors of the Bank,” he said, adding that employees across the institution looked to them for direction and leadership.
Itoba urged the directors to challenge existing narratives, engage openly and focus on developing practical solutions that could strengthen financial system stability and enhance 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,” he said.
Earlier, the Secretary of the 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 rapidly changing operating environment required continuous performance reviews and bold solutions.
She described the theme of the retreat as timely, noting that the CBN must continually assess its progress, identify gaps and develop innovative approaches to improve effectiveness, efficiency and service delivery.
She urged participants to leverage their expertise and experience to generate fresh ideas, share best practices and chart a clear path forward for the bank.
Monguno expressed confidence that the retreat would produce recommendations capable of strengthening institutional performance and enhancing coordination across departments.
