Nigeria’s financial landscape is undergoing a quiet revolution—powered not by new banking halls or traditional reforms, but by the rise of artificial intelligence (AI).
Once a subject of theoretical speculation, AI is now redefining how Nigerian financial institutions interact with customers, manage risks, and build inclusive, sustainable systems.
At the 2025 SuperNews Artificial Intelligence Conference in Lagos, two influential voices—Alhaji (Dr.) Umaru Kwairanga, Group Chairman of Nigerian Exchange (NGX) Group, and leading economist Johnson Chukwu—offered compelling arguments for why AI must become a cornerstone of Nigeria’s financial services transformation.
From futuristic concept to present reality
“AI has evolved from a subject of experimentation into a transformative force,” said Kwairanga in his keynote speech.
“It is redefining how businesses operate, decisions are made, and value is delivered—particularly within capital markets and the wider financial services ecosystem.”
Chukwu echoed this sentiment, describing AI as “an essential strategic asset” rather than a luxury. “It empowers institutions to serve their customers better, manage risk smarter, and operate more efficiently than ever before.”
Their consensus: AI is not coming—it is here. And Nigeria must scale up its use, or risk falling behind global financial innovation.
Local momentum meets global trends
Across the globe, AI is already proving its value. Financial institutions now use generative AI and machine learning to power fraud detection, risk analysis, credit scoring, and customer engagement.
Robo-advisors offer 24/7 financial guidance, while back-office automation improves compliance and efficiency.
But Nigeria is not on the sidelines.
“In Nigeria, we are part of this global shift,” Kwairanga affirmed, citing mobile banking growth as one indicator. In 2023 alone, Nigerian mobile banking users executed more than 10.7 billion transactions, up from just 315 million in 2019. This boom, he said, reflects the dynamism of Nigeria’s youthful, tech-savvy population and the country’s fintech-driven innovation.
Chukwu took this further, explaining how AI is helping automate everything from loan approvals to Know-Your-Customer (KYC) processes. These tools reduce paperwork, speed up decision-making, and help institutions offer more personalized financial services.
“The result is not just cost savings,” he said. “It’s faster response times, fewer compliance breaches, and ultimately, greater consumer trust.”
Consumer as king
For Chukwu, the consumer sits at the heart of AI’s true value. With customer expectations rising, especially among Nigeria’s digital-first generation, AI offers a way to provide more responsive and tailored services.
“Customers now want faster resolutions, tailored financial advice, and seamless service across multiple channels,” Chukwu said.
“AI is the only scalable way to meet these rising expectations.”
This is especially relevant in Nigeria’s highly competitive environment, where fintech firms are challenging traditional banks. Institutions that fail to adapt, he warned, risk being left behind.
Kwairanga agreed that inclusion and accessibility are at the core of AI’s promise. “In a country where financial inclusion remains a critical priority, this is more than convenience—it is meaningful progress,” he said.
Unlocking financial inclusion
AI’s power to democratize access to finance emerged as one of the central themes of both speeches. Traditional lending models rely on extensive documentation and credit histories, excluding large swaths of Nigeria’s informal economy.
But AI changes the equation. By analysing alternative data—such as mobile phone usage, transaction patterns, and social indicators—AI-powered platforms can assess creditworthiness in ways previously impossible.
“AI can unlock opportunities for inclusion,” said Chukwu.
“We can extend credit to farmers, artisans, and micro-enterprises using data points that conventional lenders ignore.”
This shift, both speakers noted, aligns with Nigeria’s national financial inclusion strategy, which aims to reach underserved communities with affordable and accessible financial services.
AI and sustainable finance
While most conversations about AI focus on efficiency, Kwairanga urged stakeholders to see its role in sustainability.
“At NGX Group, sustainability is not just a catchphrase—it is central to who we are,” he said. “We see Artificial Intelligence not only as a tool for improving operational efficiency but as a powerful enabler of sustainable finance.”
He referenced NGX Invest, the group’s digital investment platform, as a case study. It simplifies market access for retail investors—especially young Nigerians—by providing user-friendly tools for investment education, decision-making, and participation.
AI is also central to innovations such as green bonds, ESG (Environmental, Social, and Governance) reporting, and climate risk analysis.
“It empowers investors and issuers to align capital flows with development goals and to make decisions that reflect global best practices,” he said.
He applauded the Nigerian government’s AI Scaling Hub, launched with support from the Gates Foundation, as a critical step toward embedding AI in national development—from finance and healthcare to agriculture and education.
Smarter markets, stronger integrity
On the capital markets side, Kwairanga outlined how AI is transforming surveillance, disclosure monitoring, and regulatory oversight.
“AI can improve transparency, sharpen disclosure monitoring, and strengthen market integrity,” he said. “These are essential for sustaining investor confidence in a modern capital market.”
AI-powered systems are now capable of flagging suspicious trading activity in real-time, enabling faster regulatory responses and minimizing systemic risk. According to the IMF, such tools enhance price discovery and promote fair trading—key to maintaining investor trust.
Chukwu reinforced this, noting that back-office AI can also boost productivity and reduce operational risks by automating repetitive tasks like data entry, compliance reporting, and fraud detection.
“These tools help institutions operate with greater confidence, lower risk, and improved internal controls,” he said.
Risk and responsibility: walking the tightrope
Despite the optimism, both leaders issued strong warnings about the risks of unchecked AI deployment—especially in finance, where the stakes are high.
Kwairanga highlighted growing cybersecurity concerns, warning that “as AI adoption grows, so does our exposure to cyber threats.”
As institutions increasingly depend on third-party AI solutions and cloud infrastructure, data breaches, algorithmic errors, and system failures become more likely.
Chukwu stressed the importance of human oversight and ethical design. “We must never lose sight of the fact that algorithms can replicate bias,” he warned. “Human judgment must remain central to critical decisions.”
AI should augment—not replace—human expertise, especially when lives and livelihoods are on the line.
He called for greater investment in workforce development, ensuring that financial professionals acquire AI literacy to manage this evolving ecosystem responsibly.
Building trust through governance
Chukwu and Kwairanga both emphasized the need for a regulatory environment that keeps pace with innovation.
Chukwu called for alignment with global standards being shaped by institutions like the Financial Stability Board, the European Securities and Markets Authority (ESMA), and the International Organization of Securities Commissions (IOSCO).
“Strong governance frameworks are essential,” he said. “We need to ensure AI systems are fair, transparent, and accountable.”
Kwairanga added that regulatory collaboration across sectors is vital for protecting consumer and investor interests.
“NGX Group remains deeply committed to these principles,” he said. “We continue to explore how AI and other advanced technologies can help us build a capital market that is efficient, resilient, inclusive, and future-ready.”
A shared future
As the conference closed, the message was clear: AI offers Nigeria a rare opportunity to leapfrog legacy systems and build a modern financial services industry. But success will require cooperation across government, industry, academia, and civil society.
“This is not just a technology journey—it is a human one,” Chukwu concluded. “The true power of AI lies in its ability to enhance lives, expand opportunity, and build a financial system that is not only faster and smarter, but also fairer.”
Kwairanga agreed. “Let us work together to shape a future where AI is a force for good, enhancing efficiency, improving customer satisfaction, and advancing markets that deliver not only economic value, but real societal progress.”