The Chairman of the Nigerian Exchange Group (NGX), Dr. Umaru Kwairanga, has warned that poorly governed Artificial Intelligence (AI) systems could trigger capital flight and erode investor confidence in Nigeria. Speaking at the InnovateAI Conference Lagos 2026 on Friday, February 20, Kwairanga emphasized that risks such as opaque systems, discriminatory algorithms, and data breaches are now being priced into the country’s risk profile by global investors.
He noted that capital flows toward markets that demonstrate predictability and trust, and Nigeria risks being left behind if AI remains unregulated.
Kwairanga highlighted that as AI becomes integrated into financial services including credit scoring, trading strategies, and compliance, the failure to embed accountability could destabilize institutions. He pointed to specific structural risks, such as AI-driven credit models that systematically exclude certain demographics due to biased data or automated trading systems that amplify market volatility.
To address these concerns, he referenced the recent enforcement actions by the Nigeria Data Protection Commission (NDPC) as a signal that data governance is now enforceable with significant financial and reputational consequences.
The NGX Chairman also warned against a heavy reliance on foreign-trained AI models, arguing that they often fail to reflect local socio-economic realities. He advocated for the development of localized, context-aware AI systems tailored to Nigeria’s specific challenges in agriculture, healthcare, and financial inclusion.
According to Kwairanga, utilizing foreign models that lack local context could deepen inequality rather than promote the inclusion the technology promises.
To position Nigeria as a leader in Africa’s digital economy, Kwairanga outlined several priorities: regulatory clarity, stronger board oversight, and a deliberate investment in AI literacy across the public and private sectors.
He concluded that responsible AI is not a barrier to innovation but a prerequisite for sustainability. He reaffirmed the commitment of the NGX Group to balancing technological advancement with rigorous oversight, stating that the future belongs to institutions that combine innovation with integrity.
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