The Chairman of the Nigerian Economic Summit Group (NESG), Mr. Niyi Yusuf, has called for the responsible and ethical deployment of Artificial Intelligence (AI) in the Nigerian banking and financial services sector, emphasizing that while the technology holds immense transformative potential, its application must be governed by fairness, transparency, and a strong regulatory framework.
Speaking at a recent financial technology roundtable in Lagos, Yusuf highlighted the growing adoption of AI across banks, fintech firms, and financial institutions in Nigeria, particularly in customer service, fraud detection, credit scoring, and operational efficiency. While commending the sector for embracing innovation, he urged stakeholders to ensure that AI systems are deployed in ways that prioritize data privacy, fairness, and accountability.
According to Yusuf, as AI becomes more embedded in banking systems, there is an increasing risk of unintended consequences, such as bias in credit approvals, exclusion of underserved populations, and erosion of trust if not properly managed. He noted that many financial institutions now rely heavily on algorithmic decision-making, which, if unchecked, could create new forms of inequality and systemic risks.
He stressed the importance of aligning AI use with ethical standards, adding that “technology is only as good as the intentions and integrity of those who develop and deploy it.” The NESG chairman pointed out that although AI can help reduce fraud and streamline services, financial institutions must remain vigilant in how customer data is used, how decisions are made, and whether automated systems can be audited for fairness and reliability.
Yusuf also called on financial regulators, including the Central Bank of Nigeria (CBN), to strengthen their oversight of AI applications in banking. He proposed the introduction of guidelines that would require banks to conduct regular audits of AI systems, publish transparency reports, and adopt mechanisms for redress in cases where AI-driven decisions negatively affect customers.
He emphasized that responsible AI use must be people-centered, with clear accountability structures and a focus on inclusivity. He warned that if poorly implemented, AI could widen the digital divide, marginalize already vulnerable groups, and reduce human involvement in critical decision-making areas that still require empathy, context, and discretion.
Industry leaders and other stakeholders present at the event shared similar concerns and emphasized the need for a collaborative approach in creating a safe and productive AI ecosystem in the financial sector. Representatives from commercial banks, fintech start-ups, and data science communities acknowledged the necessity of balancing innovation with responsibility.
A senior executive from a major Nigerian bank noted that AI has already improved customer experience through 24/7 virtual assistants and personalized banking services, but also admitted that ensuring transparency in algorithmic operations remains a challenge. She said banks need to invest more in ethical AI frameworks and staff training to ensure that automation does not undermine human judgment or violate customers’ rights.
Another fintech executive highlighted the risk of algorithmic bias, especially when AI systems are trained on flawed or incomplete data sets. He argued that without proper oversight, automated systems might replicate existing social inequalities or systematically deny credit to applicants from certain demographics, thereby reinforcing financial exclusion.
In response to these concerns, the NESG Chairman urged financial institutions to prioritize the development of robust data governance policies that ensure fairness in machine learning outcomes. He encouraged banks to involve multidisciplinary teams — including ethicists, technologists, legal experts, and consumer advocates — in the design and deployment of AI systems.
Yusuf also stressed the need for public awareness and digital literacy, noting that consumers must understand how AI systems impact their financial lives. He recommended public education campaigns and customer engagement strategies that explain how automated systems work, how decisions are made, and what recourse individuals have when affected by such systems.
On the global front, the NESG Chairman pointed to growing international discussions around AI governance and urged Nigerian institutions to actively participate in shaping these frameworks to reflect local realities. He said Nigeria must not only adopt global best practices but also contribute its own insights, especially as a country with a youthful population, vibrant tech sector, and complex social dynamics.
He concluded his remarks by reaffirming the NESG’s commitment to working with regulators, financial institutions, and technology developers to promote responsible innovation. Yusuf stated that AI presents Nigeria with a chance to build a more inclusive and efficient financial system, but only if deployed with foresight, ethics, and a strong commitment to public trust.
As AI continues to evolve and reshape the banking sector, the call for responsible use resonates across boardrooms and regulatory agencies alike. With the right balance of innovation and regulation, experts believe Nigeria can harness the benefits of AI while avoiding its pitfalls, ensuring that technology serves the people, not the other way around.
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