The Chairman of the Nigerian Exchange Group, Dr Umaru Kwairanga, has warned that poor governance of Artificial Intelligence (AI) systems could lead to capital flight, distort financial markets, and undermine investor confidence in Nigeria.
Kwairanga delivered the caution during his opening address at the InnovateAI Conference Lagos 2026, stating: “Across the world, capital flows toward markets that demonstrate predictability, governance and trust.”
In a statement, the NGX Chairman emphasised that the risks posed by poorly governed AI are no longer theoretical.
He said “If AI systems are opaque, discriminatory or vulnerable to breaches, that risk is priced into companies, sectors and ultimately into the country itself.”
Kwairanga warned that as AI becomes more deeply integrated into financial systems, including credit scoring, trading strategies, and compliance monitoring, failure to embed accountability could destabilise institutions.
“Imagine AI-driven credit models systematically excluding certain demographics due to biased data, or automated trading systems amplifying volatility due to weak controls. These are structural risks that can erode public confidence,” he said.
The NGX chairman noted that AI adoption in Nigeria is already being driven by market forces, shifting the debate from whether to adopt the technology to how responsibly it is deployed.
He referenced recent enforcement actions by the Nigeria Data Protection Commission as a clear signal that data governance is now enforceable, with real financial and reputational consequences.
“Data governance is no longer optional, it is enforceable,” he said.
Emphasising the importance of trust in capital markets, Kwairanga added: “In the markets, trust is the oxygen of the system. Every trade and every investment decision rests on confidence in the integrity of the market.”
He stressed that institutions must ensure AI strengthens transparency, fairness, and oversight, rather than undermining them, and that governance must be anticipatory.
Kwairanga outlined key priorities for responsible AI adoption, including regulatory clarity, stronger board oversight, capacity building, and the development of localised AI systems suited to Nigeria’s socio-economic realities. He also called for deliberate investment in AI literacy across both public and private sectors.
Warning against reliance on foreign-trained AI models that may not reflect local realities, he added: “Such systems could deepen inequality instead of promoting inclusion. Responsible AI in Nigeria must be context-aware. It must solve Nigerian problems.”
He highlighted sectors where responsible AI could drive meaningful impact, including financial inclusion, healthcare, agriculture, and energy optimisation.
Kwairanga urged stakeholders to anchor Nigeria’s AI strategy on trust, talent, and transparency to position the country as a leader in Africa’s digital economy.
“Nations that get AI governance right will attract investment, talent and partnerships. Those that do not will face digital fragmentation and capital flight,” he said.
Reaffirming NGX Group’s commitment to balancing innovation with oversight, he concluded: “Responsible AI is not anti-innovation. It is pro-sustainability. The future will belong to institutions that combine innovation with integrity and technology with trust.”
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