CBN Warns Banks on Cybersecurity Risks to Financial Stability

The Central Bank of Nigeria (CBN) issued a warning to banks, fintech companies, and other financial institutions regarding the critical nature of cybersecurity and third-party technology risks. Dr Rakiya Yusuf, the Director of Payments System Supervision at the CBN and Chairperson of the Nigeria Electronic Fraud Forum (NeFF), delivered this warning at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.

She highlighted that vulnerabilities in one institution could rapidly affect the interconnected financial system, creating a “one-fire” effect that could destabilize it. Yusuf urged financial institutions to strengthen cybersecurity safeguards across the financial ecosystem and assess their technology dependencies and third-party relationships.

She noted that the CBN is enhancing its regulatory framework to address vulnerabilities threatening financial stability. Additionally, she called for prompt reporting of cyber incidents to regulators and advocated for greater intelligence sharing among financial institutions.