Weak AI Governance Could Drive Investors Away, NGX Chairman Warns
Innovation Meets Accountability
AS Artificial Intelligence continues to reshape financial systems globally, the Chairman of Nigerian Exchange Group, Dr Umaru Kwairanga, has warned that Nigeria must prioritise governance or risk losing investor confidence.
Delivering the opening address at the InnovateAI Conference Lagos 2026, Kwairanga argued that capital markets reward predictability and penalise uncertainty.
“Capital flows toward markets that demonstrate governance and trust,” he said. “Where AI systems lack transparency or accountability, the risk is reflected in market valuations and national perception.”
Market Confidence at Stake
Kwairanga highlighted growing integration of AI tools in credit assessments, algorithmic trading and regulatory compliance. He warned that biased datasets, opaque algorithms or weak cybersecurity safeguards could generate systemic distortions.
Automated trading systems without adequate oversight, he noted, may amplify volatility, while flawed credit algorithms could marginalise vulnerable groups.
Such developments, he said, could undermine confidence in financial institutions and reduce the attractiveness of Nigeria’s capital markets to both domestic and foreign investors.
Enforcement and Regulatory Signals
The NGX Chairman pointed to recent regulatory enforcement by the Nigeria Data Protection Commission as a sign that governance standards are tightening.
He stressed that AI governance must be proactive rather than reactive, with corporate boards taking direct responsibility for oversight.
Building a Nigerian AI Framework
Kwairanga advocated for investment in AI literacy across both public and private sectors, alongside regulatory clarity to guide innovation responsibly.
He also urged policymakers and industry leaders to develop homegrown AI systems tailored to Nigeria’s unique socio-economic needs.
Overdependence on foreign-built models, he warned, could entrench inequality and misalign technology solutions with local realities.
“Nations that get AI governance right will attract investment, talent and partnerships,” he said. “Those that do not risk digital fragmentation and capital flight.”
Reaffirming the NGX Group’s commitment to balancing innovation with integrity, Kwairanga concluded that sustainable growth depends on embedding transparency and trust at the heart of AI deployment.
