Artificial Intelligence holds substantial promise for enhancing Nigeria’s financial services sector, according to Hajiya Rakiya Shuaibu Mohammed, former ICT Director at the Central Bank of Nigeria.
Speaking at the Nairametrics webinar titled “How to Make Money Using AI: Value Creations for Businesses, Entrepreneurs, and Governments” in July, Hajiya Rakiya outlined AI’s transformative impact across various sectors, including finance.
In her discussion, she emphasized AI’s role in fraud detection, using JP Morgan Chase as a prime example. “By proactively analyzing patterns to prevent fraud, significant cost savings can be achieved, including reductions in legal fees,” she said. She noted that JP Morgan Chase had reduced fraud losses by 75% through AI integration, reflecting the technology’s potential to enhance financial security and operational efficiency.
Hajiya Rakiya also highlighted AI’s potential to revolutionize consumer lending in Nigeria. Drawing comparisons to China’s successful AI-powered credit scoring systems, she suggested that AI could significantly expand credit access in Nigeria. She cited a local experiment where AI-enabled lending led to a 95% repayment rate among previously underserved borrowers.
Addressing AI policy and regulation, she acknowledged the progress made by the Nigerian government. The Ministry of Communication and Digital Economy, under Minister Bosun Tijani, has launched several AI initiatives, including the Nigeria Artificial Intelligence Research Scheme and the National Center for Artificial Intelligence and Robotics.
Hajiya Rakiya stressed the importance of incorporating AI into educational curricula to foster a skilled workforce for the future.
