CBN Warns Banks on Cybersecurity Risks at Abuja Conference

The Central Bank of Nigeria (CBN) has warned banks, fintech companies, and other financial institutions about the serious risks associated with cybersecurity and technology. Dr. Rakiya Yusuf, the Director of Payments System Supervision at the CBN and Chairperson of the Electronic Fraud Forum (NeFF), delivered this warning during the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.

She stated that the financial sector's increasing reliance on fintechs and payment providers has introduced new vulnerabilities, which could lead to a “one-fire” effect, where a cyber incident in one institution could impact others. Yusuf urged institutions to assess their systems and those of their technology partners, emphasizing the importance of resilience in maintaining essential services during disruptions.

The CBN is enhancing its regulatory measures to identify risks and has called for prompt reporting of cyber incidents. Additionally, she stressed the need for accountability in the use of artificial intelligence and improved data protection practices among financial institutions.