Nigeria’s banking sector is facing a growing cybersecurity crisis, with cyber theft risks surging 56% in the first half of 2025, affecting over 152,000 accounts. A report by Surfshark Nigeria revealed that more than half of individuals impacted by data breaches are now at high risk of bank account theft and identity fraud, despite a decline in the overall number of breaches. The country ranks third in Sub-Saharan Africa for total data breaches, with 13 million Nigerian accounts compromised since 2004. The situation has sparked fear among depositors, many of whom have woken up to find their savings wiped out.
Investigations by Daily Sun show that while digital banking has improved access and efficiency, it has also created significant vulnerabilities. Customers who report stolen ATM cards, suspicious transactions, or compromised apps often face delayed or no response from banks, enabling fraudsters to drain accounts within hours. Some loopholes stem from outdated banking systems, such as the former “Basis” platform, which failed to block all linked accounts during emergencies. Banks like one Tier-1 institution have since migrated to more robust systems like “Finacle” to close these gaps.
Experts argue that inadequate operational controls, slow fraud response, and weak customer protection processes are compounding the problem. Jide Awe, founder of Jidaw.com, criticised banks for lacking real-time fraud detection and effective incident response, stressing that technology alone cannot guarantee security without trained and motivated personnel. He urged banks to modernise cybersecurity measures, improve staff training, and ensure transparent timelines for refunds and compensation to restore public trust.
Amid rising public outcry, the Central Bank of Nigeria (CBN) has pledged to clamp down on negligent banks. The apex bank is reviewing cases of repeated security failures and considering regulations that would mandate automated, instant account-blocking systems for high-risk alerts. CBN officials have warned that institutions ignoring customer complaints or failing to act swiftly will face sanctions, as consumer trust remains the “lifeblood of the financial system.”
Analysts warn that if fraud risks remain unchecked, Nigeria could face a consumer backlash against formal banking, threatening progress in financial inclusion and digital adoption. Chiazor Victor, Head of Research at FSL Securities, said that the push toward a cashless economy must not expose customers to greater vulnerability. He emphasised that as cybercriminals grow more sophisticated, banks must strengthen security, be held accountable for breaches, and prioritise customer protection to sustain confidence in the digital banking ecosystem.
Source: The sun