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The National Information Technology Development Agency (NITDA) is seeking partnership with the Central Bank of Nigeria (CBN) and financial institutions in the country to leverage emerging technologies such as artificial intelligence (AI) and data analytics to deepen digital payments.
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According to NITDA’s boss Kashifu Inuwa Abdullahi, this would also ensure that the country’s payment system gets more global recognition and is domestically utilised across all its six geographic zones.
Speaking during a panel discussion segment at the Central Bank of Nigeria’s 2023 Payments System Management Departmental Retreat programme, he said that financial technology (FinTech) has so far shown immense ability in driving Nigeria’s performance in the industry and Environmental, Social, and Governance (ESG), especially with the application of developmental regulation approach and enabling policies co-created by the tech ecosystem.
“This AI Policy will form the basis on which all the rules will be highlighted and Agencies like NITDA, which is the implementation arm will be talking about the strategies, framework and guidelines to navigate through its adoption and deployment,” said Abdullahi who was represented at the event by the National Director, National Centre for Artificial intelligence and Robotics (NCAIR), Ya’u Garba.
The retreat major theme was ‘Future of Payments System: Opportunities, threats and propositions.’
Deepening collaborations with key stakeholders will fast track the realisation of the goal, adding that upping the game in digital payments will not only continue to put Nigeria at the forefront as Fintech driven economy but will also enhance consumers’ user experience and help move many people out of poverty.
National Artificial intelligence Policy coming
While responding to questions regarding Nigeria’s efforts toward dealing with the opportunities and threats possed by AI, he explained that the Federal Government having noticed that the trajectory of AI models which have moved from linearly to geometrical in proportions had in the previous administration, started working on Artificial intelligence Policy through the agency which would soon unveiled to the public.
“although artificial intelligence is often regarded as a double edged sword, the potential and benefits are tangible but not without a lot of threats, and that is apart from the biases that abound, notwithstanding, our regulatory approach has always been not to stifle innovation,” noted Abdullahi.
While there was the need for measures to be deliberately taken to reap the benefits and forestall the impending threats of AI, he said NITDA would be working with CBN and other stakeholders in regulating the AI space.
Such collaborations also entail working with the United Nations, World Bank and others to see how they can help build the infrastructure for FinTech, in order to foster digital payments and possibly close the digital gap.
According to Abdullahi, the Fintech industry is blazing the trail in the use of AI to expand digital payment inclusiveness.
Government policies are startup-friendly
The NITDA boss said the government has policies that are startup ecosystem-friendly underscored by the passage of the Startup Bill into a statute by former President Muhammadu Buhari in October 2022 to help “address almost, if not all the bottlenecks plaguing the tech ecosystem.”
“The Startup Act is deemed to be a positive step forward for the country’s startup ecosystem, and it is expected to have a significant impact on businesses in the technology and innovation space.
“We have other policies tailored towards the bigger picture, like the 3MTT programme by the Federal Ministry of Communications, Innovation & Digital Economy which is expected to generate a pipeline of technical talent in line with President Bola Ahmed Tinubu’s vision of creating 2 million digital jobs by 2025, National Broadband Plan, Digital Identity Policy and the National Financial Policy which drive the financial inclusion in the country,” Inuwa affirmed.
Earlier, the Director, Payments System Management Department, CBN, Musa Jimoh harped on the need to look into the future and embrace things that are contemporary to Nigeria and the world at large and ensure that all the thinking behind payment system should be hinged on how it can benefit the common man on the street.
His words: “Everything we do in Central Bank of Nigeria, if it cannot benefit the common man on the street, then we have done nothing because the payments system is not for us but for the public good, especially as everybody uses it.
“As such, our thinking should always be what can we do to ease the pain, reduce cost, serve and make things more efficient and available to the common man on the street and indeed to all Nigerians, whether in the country or in the diaspora.”
The retreat brought together payments industry experts and stimulated discussions around innovations in the payments system.
