Abolaji Adebayo 
Stakeholders in the digital financial services sector have identified strategies for cybersecurity resilience in the industry. Cybersecurity experts in the industry analysed some of the pressing challenges and emerging threats faced by financial services companies in Nigeria while emphasising the critical need to strengthen cybersecurity resilience in the sector. The Nigerian digital financial ecosystem has witnessed remarkable growth in the past few years. According to McKinsey, Nigeria is home to over 200 fintech organisations, not counting fintech solutions provided by banks and mobile network operators.
New service providers range from mobile money operators and payment service providers to fintech firms and other financial services providers, a trend that is increasing the need to ensure consumer security and trust. These services come with numerous important digital components, including mobile applications, digital tokens, Unstructured Supplementary Service Data, and digital ledgers, all of which involve potential vulnerabilities.
It is increasingly important for the country’s financial industry to prioritize cybersecurity as it is the most targeted sector for cyber attacks. According to the African Financial Industry Barometre report, 97 percent of leaders of financial institutions in Africa rank cybercrime and regulatory constraints on cybersecurity as the leading threat to the financial services industry, alongside worsening economic conditions.
The growing frequency and complexity of attacks are the reasons financial institutions view cybersecurity as a top concern. Consequently, there is a demand to enhance cybersecurity within financial services firms to establish stronger, more robust, and more sustainable businesses. Speaking, the Head of Cytek, Global Cyber Defense Expert, Michael Arov, said the proliferation of digital financial services has led to increased cyber threats and attacks, especially on financial institutions.
He said there was a need to engage the experts to work on the security needed to protect those institutions against cyber threats. He said: “The rapid expansion of digital financial ser- vices in Nigeria has ushered in unprecedented opportunities for individuals and businesses within the ecosystem. “As a result of this, there is a surge in cyber threats, posing a significant challenge to the continued development of financial institutions in the country. We believe this challenge can be addressed by gaining insights from experts while discussing industry best practices that can advance the sector.”
Speaking on a webinar recently hosted by YNV Group, through its cybersecurity brand, Cytek, for stakeholders in the financial services sector in Nigeria, to discuss industrywide perspective on cybersecurity, Arov said: “Cytek’s presence in Nigeria is positioned to solve the biggest cybersecurity challenges in Nigeria by building capacity, providing managed security services to businesses as well as cybersecurity advisory and implementation, hence the reasons for the launch of the Security Operations Centre in our Tek Experts’ office.”
Experts noted that many firms were subjected to cyber attacks due to a lack of adequate infrastructure. According to a 2022 report by cybersecurity firm, Kaspersky Lab, over 40 per cent of Nigerian fintech companies lacked adequate cybersecurity measures, leaving them vulnerable to malware, ransomware, and other types of cyber attacks. Though the Central Bank of Nigeria had lately made significant progress in enhancing cybersecurity for the country’s financial sector, increased awareness, capacity development, and collaboration are still necessary to ensure cyber security resilience.
