The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, has called for a fundamental overhaul of financial sector supervision, warning that Nigeria’s financial stability is increasingly tied to the resilience, security and sovereignty of the digital infrastructure underpinning the economy.
Inuwa made the call while speaking on “Digital Transformation, Supervision, Innovation and Operational Resilience” at the 15th Retreat of the Central Bank of Nigeria Committee of Departmental Directors in Lagos, themed “From Reform to Institutionalisation: Strengthening the CBN Capacity to Deliver Sustainable Financial System Stability.”
According to him, the rapid transition from physical banking to mobile platforms, fintech ecosystems and embedded finance has created a complex digital environment that traditional regulatory models can no longer adequately supervise.
“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.
Regulators Must See the Entire Digital Ecosystem
Inuwa said modern financial services now depend on a wide range of interconnected systems, including telecommunications networks, cloud platforms, digital marketplaces, fintech companies, data infrastructure and emerging technologies.
He therefore urged regulators to move beyond monitoring individual financial institutions and develop real-time visibility across the wider 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 stated.
The NITDA boss also drew a distinction between digitalisation and digital transformation, noting that while digitalisation improves existing processes with technology, transformation requires institutions to rethink their operating models and create new value propositions.
He called for ecosystem-driven innovation and a broader approach to operational resilience that goes beyond conventional cybersecurity. Such an approach, he said, must incorporate third- and fourth-party risk management, cloud governance, data protection, artificial intelligence oversight and the sustainability of critical digital infrastructure.
Inuwa identified growing dependence on external technology providers as a major emerging risk, warning that disruptions affecting cloud services, connectivity infrastructure or digital platforms could trigger consequences across the financial system.
He also raised concerns about AI-driven cyber threats, noting that while artificial intelligence should be deployed as a defensive tool, AI systems themselves must be protected from manipulation and compromise. He stressed the need to build local digital talent and institutional capacity to support technology-driven supervision and long-term financial resilience.
Linking financial stability to digital sovereignty, Inuwa said Nigeria must retain meaningful control over the infrastructure supporting critical sectors.
“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 said.
He added: “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,” describing this as essential to building a secure and sustainable financial system.
Cardoso: Reform Will Protect Career Officers
In his keynote address, delivered virtually, CBN Governor Olayemi Cardoso assured staff that ongoing reforms had placed the apex bank on a stronger footing and that the transformation agenda was designed to strengthen the institution while protecting career officers.
“The Bank is in a good place,” Cardoso said, urging employees to remain confident in the future. He noted that sustainable reform must become embedded in an institution’s culture, systems and processes beyond the tenure of those who initiate it.
Cardoso highlighted the completion of a bank-wide culture survey as part of efforts to shape the institution’s future, while also celebrating recent international recognition received by the Bank, which he attributed to the dedication and professionalism of its workforce.
“The Bank is in a good place. Our staff has nothing to fear. Reform and institutionalisation are not a threat to the career officer; they are the protection of the career officer,” he stated.
Chairman of the Committee of Departmental Directors, Jimoh Musa Itoba, charged directors to take greater responsibility for financial stability and economic growth, describing them as the Bank’s “major anchors” and custodians of its processes, culture and institutional memory.
“The directors are the major anchors of the Bank,” Itoba said, urging them to challenge existing practices and develop solutions that management can implement.
Earlier, Secretary of the Board, Rashida Monguno, called for greater innovation, strategic thinking and collaboration, stressing that “the success of our initiatives will depend on our willingness to collaborate, think strategically and remain focused on achieving measurable outcomes.”