CBN restates banks, OFIs should adopt robust cybersecurity framework to protect depositors’ funds

*The Central Bank of Nigeria urges banks and Other Financial Institutions to develop ‘a very robust cybersecurity system’ for safety of customers’ money while accelerating sustainable financial inclusion in the West African country’s banking ecosystem

Isola Moses | ConsumerConnect

As digital innovation gains momentum to enrich consumer experience in the country’s banking and financial ecosystem, the Central Bank of Nigeria (CBN), again, has urged banks and Other Financial Institutions (OFIs) to make significant investments in cybersecurity to safeguard depositors’ savings from hackers and other cybercriminals.

ConsumerConnect reports the CBN has urged banks and OFIs to make banking experience seamless by implementing stronger cybersafety framework to stay a step ahead of criminals in protecting depositors’ funds.

Dr. Olayemi Cardoso, Governor of CBN, noted this at a recent panel discussion on ‘Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment’ at this year’s Nigeria Economic Summit (NES), in Abuja, FCT.

Represented at the forum by Adetona Adedeji, Acting Director of Banking Supervision at CBN, Cardoso affirmed there is so much digital innovation making waves in the banking and financial industry, especially in electronic banking.

Adedeji acknowledged though the innovation adds value to consumer experience by making banking transactions seamless, he yet urged banks and OFIs to keep a step ahead of cybercriminals in a bid to safeguard depositors’ money.

The CBN Acting Director of Banking Supervision also said: “There has been a lot of innovation in the banking sector today, especially in e-channels.

“Therefore, we require a robust risk management system. We expect every bank to implement a very strong cybersecurity framework.”

He averred: “We want customers to be protected from criminals.

“These are individuals we have been working hard to convince to deposit their money instead of keeping it under their pillows.

“We don’t want a situation where, after successfully encouraging them to bank their funds under financial inclusion initiatives, hackers exploit vulnerabilities and steal their money.”

The Bankers’ Bank further directed banks to develop “a very robust cybersecurity system that guarantees the safety of customers’ money, allowing them to deposit their funds today, sleep peacefully, and wake up tomorrow to find their money intact”.

Earlier, the CBN, October 2024, had reiterated its commitment to maintaining a stable financial system while ensuring the safety of depositors’ funds.

Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, in a statement disclosed the banking sector regulator has introduced early warning systems to proactively detect and address emerging risks.

The statement noted the fresh warning systems would allow the CBN to provide “timely solutions” to any foreseen issues in the banking and financial industry in Nigeria.