Odimmegwa Johnpeter/Abuja
The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, CCIE, has warned that traditional regulatory approaches can no longer guarantee financial stability in Nigeria, urging the Central Bank of Nigeria (CBN) to embrace real-time supervision, digital sovereignty and stronger ecosystem-wide oversight.
Abdullahi gave the warning 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 was themed “From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability.”
The NITDA DG said the rapid evolution of banking from physical branches to internet and mobile banking, fintech ecosystems and embedded financial services had fundamentally transformed the financial landscape.
According to him, modern banking now depends on telecommunications infrastructure, cloud platforms, digital marketplaces, fintech companies, data systems and emerging technologies, making it imperative for regulators to move beyond monitoring individual financial institutions.
He called for a fundamental rethink of financial sector regulation, stressing that digital stability had become inseparable from financial stability.
“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.
The NITDA boss warned that regulators could no longer depend solely on periodic returns submitted by financial institutions to understand developments within the sector.
“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.
Abdullahi also distinguished between digitalisation and digital transformation, explaining that while digitalisation involves using technology to improve existing processes, digital transformation requires institutions to develop new value propositions and operating models.
He urged regulators and financial institutions to embrace ecosystem-driven innovation capable of responding to rapidly changing technological realities.
On operational resilience, Inuwa said the concept must extend beyond conventional cybersecurity frameworks to include third-party and fourth-party risks, cloud governance, data protection, Artificial Intelligence oversight and the sustainability of digital infrastructure.
He identified growing dependence on external technology providers as one of the major emerging risks facing financial systems, warning that disruptions to cloud services, connectivity infrastructure and digital platforms could have far-reaching consequences across the financial ecosystem.
The NITDA DG also raised concerns over emerging cyber threats powered by Artificial Intelligence, noting that AI systems themselves were increasingly becoming targets of sophisticated attacks.
He stressed the need for regulators and financial institutions to deploy AI for defence while simultaneously protecting AI-powered systems from manipulation and compromise.
Abdullahi further emphasised the importance of developing local digital talent and institutional capacity to support supervision in an increasingly technology-dependent financial environment.
In one of the strongest messages of his presentation, the NITDA boss linked financial stability directly to digital sovereignty, arguing that countries must retain meaningful control over the digital infrastructure powering 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 financial supervision, focusing not only on regulated institutions but also on the technologies, platforms, infrastructure and stakeholders that collectively sustain modern banking and financial services.
“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.
He said such an approach would be critical to building a resilient, secure and sustainable financial system capable of supporting Nigeria’s digital economy ambitions.
In his keynote address delivered virtually, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, assured participants 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 career officers.
Cardoso said the real success of reform depended on its ability to become embedded in an institution’s culture, systems and processes long after its initiators had left office.
He noted that the CBN had recorded progress across several strategic areas, including the completion of a bank-wide culture survey that allowed staff to contribute to shaping the institution’s future.
The Governor described culture as the foundation of lasting reform and pledged that staff feedback would continue to inform meaningful action.
He also highlighted the Bank’s recent international recognition, describing it as a reflection of the dedication, professionalism and commitment of its workforce.
Cardoso urged staff not to view reforms and institutionalisation as threats, but as measures designed to strengthen the institution and create a more secure environment for career growth.
“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.
He challenged the directors to empower their teams, encourage constructive engagement and strengthen collaboration across departments, stressing that a resilient and future-ready CBN would depend on the collective efforts, integrity and professionalism of its people.
Also speaking, the Chairman of the Committee of Departmental Directors of the CBN, 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 Bank’s “major anchors” and custodians of its processes, culture and institutional memory.
He said the retreat provided an opportunity to critically examine how the CBN could contribute to advancing the economy and achieving Nigeria’s aspiration of becoming a one-trillion-dollar economy.
He urged participants to challenge existing narratives and focus on practical solutions capable of strengthening financial system stability and enhancing public trust.
Earlier, the Secretary of the Board, Committee of Departmental Directors, Rashida Monguno, called on the directors to embrace innovation, strategic thinking and stronger collaboration as the CBN positions itself to respond to emerging challenges.
Monguno said the rapidly evolving operating environment demanded continuous performance reviews and bold solutions, urging participants to leverage their collective expertise to generate fresh ideas and practical recommendations.
She expressed confidence that the retreat would produce recommendations capable of strengthening institutional performance and coordination across departments.
The retreat, she added, offered an opportunity to foster innovation, reinforce teamwork and strengthen the collective responsibility of building a more responsive and effective Central Bank.
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