The Chairman of Nigerian Exchange Group, Umaru Kwairanga, has cautioned that inadequate governance of Artificial Intelligence (AI) systems could lead to capital flight, market distortions and a decline in investors’ confidence in Nigeria.
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Kwairanga issued the warning on Friday while delivering his opening remarks at the InnovateAI Conference Lagos 2026.
The NGX Chairman stressed that the dangers linked to poorly regulated AI are no longer theoretical.
He said: “Across the world, capital flows toward markets that demonstrate predictability, governance and trust.
“If AI systems are opaque, discriminatory or vulnerable to breaches, that risk is priced into companies, sectors and ultimately into the country itself.”
Kwairanga cautioned that as AI becomes 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 was already being driven by market forces, shifting the focus from whether to adopt the technology to how responsibly it is deployed.
Kwairanga made reference to recent enforcement actions by the Nigeria Data Protection Commission as a clear indication that data governance was now enforceable, with real financial and reputational consequences.
“Data governance is no longer optional, it is enforceable,” he said.
He emphasised that in capital markets, trust remained fundamental to stability and growth.
“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 added.
Kwairanga said institutions must ensure that AI strengthens transparency, fairness and oversight, rather than weakening them, emphasising that governance must be anticipatory.
He 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.
The Chairman of Nigerian Exchange Group, therefore, 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, adding that such systems could deepen inequality instead of promoting inclusion.
According to him, responsible AI must be tailored to address Nigeria’s specific challenges, including financial inclusion, healthcare delivery, agriculture and energy optimisation.
“Responsible AI in Nigeria must be context-aware. It must solve Nigerian problems,” he said.
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.
The NGX Chairman reaffirmed the commitment of the NGX Group to balancing innovation with strong oversight.
“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,” he said.
NAN