By Chimezie Godfrey
The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, has warned that traditional regulatory tools can no longer guarantee stability in Nigeria’s rapidly evolving financial sector, urging the Central Bank of Nigeria (CBN) to embrace real-time digital supervision and a broader ecosystem-based approach to regulation.
Inuwa made the call while speaking on “Digital Transformation, Supervision, Innovation and Operational Resilience” at the 15th Retreat of the CBN Committee of Departmental Directors in Lagos.
The retreat, themed “From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability,” brought together senior directors of the apex bank to examine reforms and strategies for strengthening Nigeria’s financial system.
The NITDA boss said the transformation of banking from physical branches to internet and mobile banking, fintech platforms and embedded financial services had created a complex digital ecosystem that extends beyond the direct control of individual financial institutions.
He said financial stability could no longer be separated from digital stability, stressing that regulators must understand and supervise the wider ecosystem of telecommunications networks, cloud platforms, fintechs, data systems, digital marketplaces and emerging technologies that underpin 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.
He urged regulators to move beyond reliance on periodic returns from regulated institutions and develop real-time visibility across the financial ecosystem.
“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 drew a distinction between digitalisation and digital transformation, explaining that while digitalisation involves using technology to improve existing processes, digital transformation requires institutions to rethink their business models, operating structures and value propositions.
He urged financial regulators and institutions to embrace ecosystem-driven innovation capable of responding to rapid technological changes.
On operational resilience, the NITDA director-general said financial institutions must look beyond conventional cybersecurity measures to address third-party and fourth-party risks, cloud governance, data protection, artificial intelligence oversight and the sustainability of critical digital infrastructure.
He identified growing dependence on external technology providers as a major emerging risk, warning that disruptions to cloud services, telecommunications infrastructure and digital platforms could trigger widespread consequences across the financial system.
Inuwa also raised concerns over increasingly sophisticated cyber threats powered by artificial intelligence, noting that while AI could be deployed to strengthen cyber defence, AI-powered systems themselves must be protected against manipulation and compromise.
He stressed the need to develop local digital talent and institutional capacity to support effective technology-driven financial supervision.
The NITDA chief further linked financial stability to digital sovereignty, arguing that Nigeria must maintain 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 individual institutions, adding that regulators must be able to detect, understand and respond to risks in real time.
“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, CBN Governor Olayemi Cardoso assured staff that the apex bank was in a strong position following ongoing reforms, stressing that the institution’s transformation agenda was designed to strengthen the bank while protecting the career prospects of its employees.
Cardoso said the success of reforms depended on their integration into the culture, systems and processes of the institution.
“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 that allowed staff to contribute to shaping the future of the institution.
He also commended the bank’s workforce following its recent international recognition, saying the achievement reflected the professionalism and dedication of employees across departments and locations.
Cardoso urged directors to empower their teams, promote constructive engagement and strengthen collaboration across departments, saying a resilient and future-ready CBN would depend on the collective efforts and integrity of its workforce.
The Chairman of the CBN Committee of Departmental Directors, Jimoh Musa Itoba, described directors as the “major anchors” of the apex bank and urged them to take greater responsibility for driving financial stability and supporting economic growth.
Itoba said the retreat offered an opportunity for directors to critically examine the role of the CBN in advancing Nigeria’s economy and contributing to the country’s ambition of becoming a $1 trillion economy.
“The directors are the major anchors of the Bank,” he said, noting that their actions and leadership significantly influence institutional culture, confidence and effectiveness.
He challenged participants to question existing practices and develop practical solutions that management could implement to strengthen financial system stability and public confidence.
Earlier, the Secretary of the Committee of Departmental Directors, Rashida Monguno, urged the 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, bold solutions and stronger coordination across departments.
She expressed confidence that the retreat would generate practical recommendations capable of strengthening institutional performance and enhancing the bank’s capacity to deliver on its mandate.
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