Bank Auditors Must Deepen Their Understanding of AI to Close Accountability Gaps

Oluchi Chibuzor

Nigerian banks have been instructed to deepen their understanding of Artificial Intelligence (AI) to prevent accountability gaps in the country’s financial sector.

At the same time, banks have been urged to strengthen AI governance and management tools amid rising cybersecurity risks.

These directives were issued during the 64th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), which was themed “Internal Audit Function in the AI Era.”

Chairperson of ACAEBIN, Mrs. Aina, welcomed the gathering, noting that it was a privilege to bring together professionals committed to enhancing governance, risk management, internal controls, and organisational resilience in Nigeria’s banking industry.

She highlighted that ACAEBIN has focused on building the capacity of its members and increasing the relevance of the Internal Audit Function in an increasingly complex operating environment.

“These efforts are driven by a shared goal—to equip Internal Auditors to respond effectively and collaboratively to dynamic and emerging risks and to create greater value for our institutions,” she said. “Artificial Intelligence is transforming banking operations, risk management, fraud detection, customer engagement, and decision‑making.”

Group Managing Director and Chief Executive Officer of UBA, Mr. Oliver Alawuba, warned that as banks accelerate AI adoption, there is a risk of celebrating innovation before fully grasping its risks.

Represented by UBA’s Executive Director of Finance and Risk Management, Ugochukwu Nwaghodoh, he emphasised that internal audit must remain independent, objective, and firm.

“We cannot audit what we do not understand. Chief Audit Executives and their teams must deepen their understanding of AI, machine learning, data governance, cyber risk, model risk, cloud architecture, digital identity, automation, third‑party technology risk, and ethical AI,” he said.