Manny Ita –
A new report by the Central Bank of Nigeria (CBN) has revealed that artificial intelligence (AI) has become a foundational component of operations within the country’s fintech sector, moving beyond its previous perception as a buzzword.
According to the report, AI systems are now responsible for handling a significant share of critical processes, particularly in fraud detection and credit scoring. Financial technology firms increasingly rely on machine learning algorithms to identify suspicious transactions in real time and assess customer creditworthiness with greater accuracy.
The CBN noted that the shift toward AI-driven systems has improved efficiency, reduced operational risks, and enhanced financial inclusion by enabling fintech companies to serve previously unbanked or underbanked populations.
Industry stakeholders cited in the report emphasised that AI adoption is also helping to lower default rates and strengthen trust in digital financial services. However, the report highlighted the need for robust regulatory frameworks to address concerns around data privacy, algorithmic bias, and cybersecurity.
The apex bank reaffirmed its commitment to supporting innovation while ensuring that emerging technologies are deployed responsibly within Nigeria’s financial ecosystem.
