Bank auditors urged to lead frontline defence as cyber attacks escalate

Bank auditors have been called upon to take a leading role in the fight against cyberattacks, as industry stakeholders stress that cybersecurity can no longer be viewed as an isolated IT challenge but must now be treated as a central pillar of enterprise-wide resilience.

This position was strongly articulated at the 63rd quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria, which was held in Lagos on Friday and was hosted by Union Bank.

Speaking on behalf of Yetunde Oni, Managing Director and Chief Executive Officer of Union Bank, Olufunmilola Aluko, Chief Brand and Marketing Officer and Head of Customer Experience, expressed deep concern over Nigeria’s growing vulnerability to cybercrime.

She noted that losses reported in 2023 alone ran into hundreds of billions of Naira, placing the country among the top global sources of cyberattacks. Aluko warned that this trend underscores the need for stronger internal frameworks, adding that “cybersecurity is no longer an IT issue; it is an enterprise-wide resilience issue. Internal audit must lead in validating and strengthening controls.”

She explained that the theme of the meeting, “Navigating the Next Wave: Audit Resilience Amid Emerging Risks and Regulatory Complexity,” mirrors both domestic pressures and global developments shaping the financial landscape. According to her, the financial sector is now experiencing multiple waves of disruption that intersect with macroeconomic instability, exchange rate swings, the expansion of digital ecosystems, rising cybersecurity incidents, increasing regulatory demands and growing expectations around sustainability. Aluko stressed that Chief Audit Executives are not only custodians of compliance but also strategic sentinels who must ensure institutional resilience and protect public confidence.

She also pointed to shifting global regulatory standards such as the European Union’s Sixth Anti-Money Laundering Directive. Although not directly binding on Nigeria, she noted that such frameworks influence international expectations of transparency and accountability in the country’s financial sector. In assessing domestic economic trends, Aluko highlighted the far-reaching implications of foreign exchange liberalisation, persistent inflation and ongoing liquidity challenges, adding that internal audit must now challenge long-held assumptions, strengthen scenario analysis and provide assurance on risk models in an increasingly unpredictable environment.

The gathering brought together top audit executives, regulators and industry practitioners, all of whom deliberated on how to deepen audit resilience at a time when the financial system faces unprecedented complexity.

In his welcome remarks, Isiaka Arowolo, Union Bank’s chief audit executive, said the bank was honoured to host the meeting, describing it as an opportunity to reinforce Union Bank’s longstanding commitment to financial integrity and sound corporate governance. “It is a distinct honour for us at Union Bank to host the esteemed members of ACAEBIN, regulators, and stakeholders,” he said. “By welcoming this crucial forum, we reaffirm our commitment to fostering financial integrity and robust governance across the industry. This collaboration among audit leaders ensures that the Nigerian banking sector remains resilient, transparent and trustworthy in the eyes of stakeholders and regulators.”

Delivering her keynote address, Aina Amah, ACAEBIN chairperson, said the theme of the meeting captures the evolving pressures redefining audit functions across the banking sector.

She observed that “the world is moving faster than ever, testing institutional agility and demanding greater professional courage,” emphasising that emerging regulatory demands relating to anti-money laundering and counter-terrorism financing, cybersecurity, data privacy, sustainability standards and consumer protection have significantly reshaped accountability systems across financial institutions. Amah also highlighted the impact of ongoing banking consolidation, inflationary pressures, geopolitical uncertainties and foreign exchange volatility, which she described as interconnected risks transforming the audit landscape.

According to her, internal audit must strengthen foresight, demonstrate resilience and deliver strategic value far beyond traditional compliance roles. Amah disclosed that ACAEBIN achieved notable milestones in the past quarter, including a week-long cybersecurity and risk-based auditing training programme in Mauritius, alongside two additional capacity-building sessions conducted in partnership with Phillips Consulting Limited and Intermarc Consulting Limited. She explained that these interventions were designed to address critical vulnerability points across the modern financial system.

Amah also announced the successful establishment of the ACAEBIN Training Academy, which she said was created to build a structured and sustainable pipeline of next-generation audit leaders. She revealed that the academy is already developing specialised training modules and planning an international study tour to Singapore and the United Kingdom in May 2026, with a focus on Open Banking. She equally commended the Central Bank of Nigeria for the progress made on the industry’s draft Guidelines for ATM Operations, noting that ACAEBIN had played an active role in shaping the document.

Amah urged audit executives to embrace the challenges and opportunities of the moment, stressing that “the future of internal audit is not about survival; it is about ascendancy. Audit resilience must go beyond reacting to disruptions; it must anticipate them.” She also disclosed ongoing efforts to develop a Universal Audit Programme aimed at harmonising and strengthening internal audit methodologies across Nigeria’s banking industry, reinforcing the association’s commitment to elevating audit practice in line with global standards.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.

She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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