Nigerian Banks Urged to Deepen AI Understanding Amidst Rising Risks

Nigerian banks face a critical need to enhance their comprehension of Artificial Intelligence (AI) to mitigate potential accountability gaps within the financial sector. This imperative was highlighted as banks were also urged to bolster their AI governance and management tools amidst escalating cybersecurity risks.

The call to action emerged during the 64th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN). The event, centered on the theme ‘Internal Audit Function in the AI Era,’ brought together professionals focused on strengthening governance, risk management, and internal controls in Nigeria's banking industry.

Mrs. Aina, Chairperson of ACAEBIN, emphasized the association's commitment to equipping members to effectively respond to dynamic risks and create greater value. She noted that AI is fundamentally transforming banking operations, from risk management and fraud detection to customer engagement and decision-making.

Mr. Oliver Alawuba, Group Managing Director and Chief Executive Officer of UBA, represented by Executive Director Ugochukwu Nwaghodoh, cautioned that the rapid adoption of AI could lead to celebrating innovation before fully grasping its associated risks. He stressed the vital role of independent and objective internal audit functions, stating, "We cannot audit what we do not understand." Chief Audit Executives and their teams, he added, must gain a deeper understanding of AI, machine learning, data governance, cyber risk, model risk, cloud architecture, digital identity, automation, third-party technology risk, and ethical AI.

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We cannot audit what we do not understand.