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The National Information Technology Development Agency (NITDA) has warned that Nigeria can no longer rely on conventional regulatory approaches to safeguard financial stability as banking and financial services become increasingly dependent on digital infrastructure.
NITDA Director-General, Kashifu Inuwa, gave the warning in Lagos during the 15th Retreat of the Central Bank of Nigeria’s Committee of Departmental Directors, where he called for a fundamental shift in how financial-sector risks are monitored and managed.
Financial Stability Now Tied to Digital Stability
Inuwa argued that the evolution of banking from physical branches to internet banking, mobile platforms, fintech ecosystems and embedded financial services has created a much more interconnected system than traditional regulatory models were designed to supervise.
He said financial stability and digital stability are now inseparable, warning that weaknesses in the technology supporting financial services could quickly translate into broader systemic risks.
Nigeria’s electronic payment ecosystem, which processed approximately ₦1.07 quadrillion in 2024, illustrates the scale of this transformation and the need for regulators to understand activity beyond individual financial institutions.
Regulators Need Real-Time Visibility
According to the NITDA chief, regulators must move beyond relying primarily on periodic reports submitted by banks and other regulated institutions.
He called for end-to-end visibility across the financial ecosystem, covering the telecommunications networks, cloud infrastructure, fintech platforms, data systems and other technologies that support modern financial services.
The objective, he said, should be to identify and respond to risks before they become threats to financial stability.
This would require regulators to develop stronger technology capabilities and monitor risks across the entire ecosystem rather than treating banks as isolated entities.
Cloud, Third-Party and Cyber Risks Rising
Inuwa also highlighted the growing dependence of financial institutions 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.
A disruption affecting a cloud provider, telecommunications network or other critical digital platform, he noted, could have consequences far beyond a single technology company because of the interconnected nature of today’s financial system.
The NITDA chief further warned that artificial intelligence is creating a dual challenge: institutions must deploy AI to strengthen cyber defence while also protecting AI-powered systems from sophisticated attacks and manipulation.
Digital Sovereignty Becomes a Financial-Security Issue
A major theme of Inuwa’s presentation was the relationship between digital sovereignty and financial stability.
He argued that Nigeria’s ability to protect the integrity of its financial system increasingly depends on its capacity to build, control and maintain critical digital infrastructure.
This position is particularly relevant as financial institutions become more reliant on cloud computing, digital platforms and other technology infrastructure to deliver services.
The NITDA boss therefore urged policymakers to consider control over critical digital infrastructure as part of the country’s broader financial-resilience strategy.
CBN Reaffirms Focus on Institutional Resilience
Speaking virtually at the retreat, CBN Governor Olayemi Cardoso said ongoing reforms have placed the apex bank in a stronger position and urged employees to view institutionalisation as a mechanism for protecting the institution and its career officers.
Cardoso said the success of reforms would ultimately depend on embedding them into the CBN’s culture, systems and processes rather than tying them to individual leaders.
He also encouraged directors to strengthen collaboration and empower their teams as the bank continues its transformation agenda.
Directors Charged With Driving Change
Chairman of the CBN Committee of Departmental Directors, Jimoh Musa Itoba, described directors as key custodians of the bank’s processes, culture and institutional memory.
He challenged them to take greater responsibility for strengthening financial stability and supporting Nigeria’s economic ambitions, while using the retreat to question existing approaches and develop practical solutions.
Earlier, the committee’s Secretary, Rashida Monguno, urged directors to embrace innovation, strategic thinking and collaboration as the operating environment becomes more complex.
The Bigger Picture
NITDA’s warning reflects a broader transformation in Nigeria’s financial sector: the institutions being regulated are no longer operating within a purely financial ecosystem.
Banks and fintechs now depend on telecommunications infrastructure, cloud platforms, data systems, software providers and emerging technologies. As a result, a disruption in one part of the digital ecosystem can potentially affect several parts of the financial system simultaneously.
For regulators, the implication is clear supervision must evolve from simply checking whether individual institutions comply with established rules to understanding how the entire digital ecosystem functions and where systemic vulnerabilities can emerge.
Inuwa’s message to the CBN therefore points toward a future in which financial regulation is increasingly technology-driven, real-time and ecosystem-wide, with digital resilience becoming a central component of Nigeria’s financial stability framework.
