NITDA Eyes Partnership with CBN for Tech Regulation and Digital Payment Drive

In an effort to elevate the global recognition and widespread domestic utilization of the Nigeria Payments System, Kashifu Inuwa Abdullahi, the Director-General of the National Information Technology Development Agency (NITDA), CCIE, has reiterated the importance of collaboration between the Central Bank of Nigeria (CBN) and financial institutions. This collaboration aims to harness emerging technologies like Artificial Intelligence (AI) and Data Analytics to enhance the depth of digital payments across the country.

In a panel discussion segment during the Central Bank of Nigeria’s 2023 Payments System Management Departmental Retreat program, Inuwa, represented by Engr Ya’u Garba, the National Director of the National Centre for Artificial Intelligence and Robotics (NCAIR), emphasized the pivotal role of financial technology (FinTech) in propelling Nigeria’s advancements in the industry and Environmental, Social, and Governance (ESG). He underscored the positive impact of developmental regulation and enabling policies crafted in tandem with the tech ecosystem.

Inuwa highlighted the potential benefits of deepening collaborations with key stakeholders, asserting that this approach would expedite the realization of digital payment goals. He emphasized that advancing digital payments not only positions Nigeria as a Fintech-driven economy but also enhances consumer experiences and contributes to poverty alleviation.

Addressing questions about Nigeria’s response to the opportunities and threats posed by Artificial Intelligence, Inuwa explained that the Federal Government had recognized the exponential growth of AI models and had initiated the development of an Artificial Intelligence Policy. This policy, to be unveiled soon, will provide the foundation for outlining rules, with NITDA focusing on strategies, frameworks, and guidelines for AI adoption and deployment.

While acknowledging the dual nature of AI as a potential double-edged sword with tangible benefits and threats, Inuwa affirmed the government’s regulatory approach aimed at fostering innovation rather than stifling it. He stressed the need for deliberate measures to harness AI benefits while mitigating potential risks, emphasizing NITDA’s collaborative efforts with CBN in regulating the AI space.

Inuwa also highlighted the significance of the recently passed Start-up Bill, assented to by former President Muhammadu Buhari in October 2022. He expressed confidence that the Start-up Bill would address many challenges facing the tech ecosystem, fostering a more conducive environment for startups.

The Director-General noted the Fintech industry’s pioneering role but urged further exploration and exploitation of AI to unlock additional potential. He emphasized the importance of collaboration with international organizations such as the United Nations and World Bank to build the necessary infrastructure for FinTech, fostering digital payments and narrowing the digital gap.

Inuwa praised the Startup Act as a positive step forward for the country’s startup ecosystem, alongside other policies like the 3MTT program, National Broadband Plan, Digital Identity Policy, and the National Financial Policy. These policies collectively contribute to the broader vision of creating 2 million digital jobs by 2025, aligning with President Bola Ahmed Tinubu’s goals.

During the retreat, Musa Jimoh, the Director of the Payments System Management Department at CBN, emphasized the importance of forward-thinking and embracing contemporary solutions for the benefit of the common man. He highlighted the need for all initiatives within the Central Bank of Nigeria to focus on efficiency, cost reduction, and accessibility for the public good.

The retreat, themed “Future of Payments System: Opportunities, Threats, and Propositions,” brought together industry experts and stimulated discussions around innovations in the Payments System space. It served as a platform for shaping the future trajectory of digital payments in Nigeria, aligning with the evolving needs of the common man and the broader public.