Artificial Intelligence, Economic Governance and Financial Stability in Nigeria: Emerging Risks and Policy Opportunities

This paper examines how artificial intelligence (AI) is reshaping economic governance and financial stability in Nigeria between 2024 and 2026. Using qualitative analysis of Central Bank of Nigeria (CBN) regulations, national AI policy documents, reports of international standard-setters, and recent empirical studies, it finds that AI strengthens fraud detection, economic nowcasting and oversight of public expenditure. However, it also introduces risks, including cybersecurity threats, market concentration, algorithmic bias, herding behaviour, and explainability risks, which gaps in regulatory capacity, data, and infrastructure magnify. The paper concludes that Nigeria needs a risk-proportionate AI supervisory framework, mandatory algorithmic audits and phased institutional capacity building.