CYBERSECURITY CHALLENGES IN THE FINANCIAL SECTOR: EFFECT ON THE ECONOMY OF NIGERIA

Abstract

The digitization of Nigeria’s financial sector has enhanced efficiency but exposed it to escalating cyber security threats. This study examines cyber security challenges in the Nigerian financial sector and their effect on economic growth from 2016 to 2025. Using secondary data from NIBSS, CBN, NDIC, and NBS and employing OLS regression, the findings reveal that cyber fraud, data breaches, and system downtime have a significant negative impact on GDP growth, financial inclusion, and investor confidence. In 2023, financial institutions lost ₦12.5 billion to 4.4 million fraud incidents. The study concludes that weak enforcement, skill deficits, and low cyber literacy are key drivers. It recommends AI-driven security, specialized cybercrime courts, and a national Financial Sector CERT.