CBN URGED TO EXPAND OVERSIGHT OF FINTECH AND CLOUD RISKS

The Central Bank of Nigeria (CBN) has been urged to broaden its regulatory oversight to cover risks arising from fintech companies, cloud service providers, telecom networks, and other technology partners supporting financial institutions.

The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, said traditional regulatory approaches are no longer sufficient as banks increasingly depend on interconnected digital infrastructure.

He warned that a major disruption at an external technology provider could spread across the wider financial system, potentially affecting multiple institutions at the same time.

Inuwa said financial stability now depends increasingly on resilient technology infrastructure and Nigeria’s ability to maintain greater control over its digital systems.

Technology experts said stronger oversight of third-party technology providers would help regulators identify operational and cybersecurity risks before they develop into wider financial problems.

The CBN already incorporates technology and third-party risks into its broader cybersecurity and operational-resilience supervision, but stakeholders are calling for a more comprehensive approach as financial services become increasingly digital.

The call highlights the growing need for regulators, financial institutions, and technology companies to work together to strengthen Nigeria’s digital financial ecosystem and protect the stability of the banking sector.