Cybersecurity experts are warning that Nigerian banks must urgently increase investments in digital defenses as cybercrime continues to cost the sector billions. The Nigeria Inter-Bank Settlement System (NIBSS) reported that Nigerian financial institutions lost a staggering N52.26 billion to fraud in 2024—nearly triple the N17.67 billion recorded in 2023, highlighting a 195% year-on-year spike in financial losses.
At a recent cybersecurity forum organized by Bitscape Technology Services in Lagos, industry leaders emphasized that the rapid evolution of artificial intelligence (AI) and cloud computing has provided hackers with increasingly sophisticated tools. Nonso Magulike, Executive Director at Bitscape, noted that while some banks are making commendable cybersecurity investments, many still lag behind the pace of cyber threats. “The evolution of cloud and AI is moving very quickly. Bad actors can operate at a high rate, so banks need to keep investing,” he said.
The forum also highlighted the importance of scalable and cost-effective cybersecurity solutions, especially for small and medium-sized enterprises (SMEs). Magulike explained that Bitscape organized the event to demonstrate that cybersecurity doesn’t always require huge budgets. “Effective risk mitigation goes beyond firewalls and software. It requires a holistic approach combining people, technology, and processes,” he added.
Experts stressed the dual role of AI in the cybersecurity landscape. Frank Egwakhide, Chief Information Security Officer at DLM Capital, described AI as a “double-edged sword” that can be used both to strengthen defenses and execute more complex cyberattacks. Ayodeji Faleto, Head of Compliance at Crystal Finance, echoed the need for ethical and proactive use of AI, warning that businesses must go beyond mere regulatory compliance to ensure robust, long-term protection.
A recent report by cybersecurity firm Sophos revealed that although 65% of organizations have adopted generative AI (GenAI) tools, 89% of IT leaders worldwide remain concerned about vulnerabilities in AI-powered security systems. While AI is now embedded in 98% of surveyed organizations’ cybersecurity infrastructures, over-reliance on technology without a comprehensive human-led strategy could leave firms exposed to escalating cyber threats.
source: nairametrics