CBN Urges Banks to Enhance Cybersecurity and Risk Management

The Central Bank of Nigeria (CBN) has issued a warning to banks regarding rising cybersecurity, liquidity, and large exposure risks. This caution comes in light of the N4.65 trillion raised through the sector's recapitalization, which must be complemented by stronger risk management and corporate governance.

Dr Muhammad Sani Abdullahi, Deputy Governor of Corporate Services at CBN, delivered this warning at the 38th Seminar for Finance Correspondents and Business Editors organized by the Finance Correspondents Association of Nigeria (FICAN). He stated that while the recapitalization has strengthened banks' balance sheets, it could also lead to new risks if not managed effectively.

Abdullahi emphasized the importance of investing in cybersecurity and data protection as financial services increasingly transition to digital platforms. He also highlighted that banks should utilize their enhanced capital to finance the real economy, particularly small businesses, manufacturing, and infrastructure, to support Nigeria's goal of achieving a $1 trillion economy by 2030.