Nigerian Banks Urged to Strengthen Cybersecurity as Fraud Losses Hit N52bn

Cybersecurity experts have warned that Nigerian banks and financial institutions must urgently strengthen their defenses as cybercrime escalates, with industry losses surging by nearly 200% in 2024.

According to fresh data from the Nigeria Inter-Bank Settlement System (NIBSS), Nigerian banks lost ?52.26 billion to fraud in 2024, up from ?17.67 billion in 2023 — a 195% increase year-on-year.

Threat Landscape Getting More Complex

At a cybersecurity forum hosted by Bitscape, industry leaders stressed that the rapid evolution of artificial intelligence (AI) and cloud technology is arming hackers with more sophisticated tools.

• Nonso Magulike, Executive Director at Bitscape, noted that while banks are increasing their investments in security, they must do more to match the pace of evolving threats.

“The evolution of cloud and AI is moving very quickly. This means that bad actors can do things at a rate that is quite high. So, banks need to keep investing,” he said.

Magulike explained that cybersecurity is not only for big banks with large budgets. Small and medium-sized firms are equally at risk, but many underestimate the threats.

“Cybersecurity doesn’t always have to be expensive. The key is adopting practical, cost-effective solutions that combine people, processes, and technology,” he added.

AI: A Double-Edged Sword

Experts also highlighted that AI, while powerful for defense, is increasingly being weaponized by hackers.

• Frank Egwakhide, Chief Information Security Officer at DLM Capital, warned:

“AI is like a two-edged sword. Hackers are already using it, so organisations must also use AI for detection and prevention. It has to be AI versus AI.”

• Ayodeji Faleto, Head of Compliance at Crystal Finance, echoed the concerns, stressing that regulators can only do so much.

“Regulators are trying their best, but compliance must go beyond ticking boxes. Even when regulators are not watching, can your systems stand the test of time?”

Global Concerns on AI in Cybersecurity

A recent report by Sophos underscores the global nature of the challenge. The study, “Beyond the Hype: The Business Reality of AI for Cybersecurity”, surveyed 400 IT leaders and found that:

• 98% of organisations already use AI in cybersecurity.
• 65% have adopted generative AI tools.
• Yet, 89% of IT leaders worry about vulnerabilities in AI-powered tools that could expose them to new risks.

Bottom Line

With Nigerian banks already losing tens of billions to cyber fraud annually, experts say the industry can no longer afford a reactive approach. The consensus from the forum was clear: banks must embrace AI-powered defenses, invest in cost-effective security for all business sizes, and move beyond surface-level compliance to build resilient systems.