The Impact of Artificial Intelligence on Financial Regulations in Nigeria: Challenges and Prospects
Year: 2025
Type: article
Abstract: Artificial intelligence (AI) is rapidly transforming financial systems worldwide, particularly in Africa and Nigeria, by automating regulatory compliance, enhancing fraud detection, and improving risk management. However, integrating AI into financial regulations comes with both potential and challenges. This article examines the impact of AI-driven innovations on financial oversight, compliance systems, and regulatory frameworks in relation to Nigerian financial legislation. The report draws attention to a number of significant problems, such as possible biases in AI algorithms, moral dilemmas, threats to cyber security, legal gaps, and insufficient technology infrastructure. Additionally emphasized is the potential of artificial intelligence (AI) to enhance financial inclusion, increase regulatory efficacy, and enhance financial sector decision-making. Nigeria's present financial regulatory policies, the role of the Central Bank of Nigeria (CBN) and other financial regulatory agencies in adapting to AI developments, and global best practices that have the potential to alter Nigeria's regulatory landscape are all examined in this qualitative study. The paper ends with recommendations for a robust regulatory framework that promotes openness in AI, balances innovation and oversight, and strengthens collaboration between financial regulators, AI developers, and financial institutions. The results show that although artificial intelligence (AI) has many advantages, appropriate regulation is necessary to reduce related risks, guarantee ethical AI use, and safeguard financial stability
Source: Bisnis Jasa dan Keuangan
Authors: Aliyu Ibrahim, Adamu Abubakar Muhammad, Abubakar Aliyu Yakub, Usman Jibril Mikail
Institutions: Federal University Kashere, Taraba State University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409755685