Banks urged to tighten cyber defences

Victor Ologun

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Banks in Nigeria have been urged to strengthen their cybersecurity systems as rising digital fraud continues to erode customer trust and slow the growth of the country’s digital banking sector.

A marketing professional in Nigeria’s financial services industry, Victor Ologun, said weak cyber defences are exposing customers to increasing risks.

In a statement to The PUNCH, Ologun explained that his experience in the financial sector, including his role as marketing manager at Newedge Finance Limited, exposed him to both the opportunities and vulnerabilities in Nigeria’s digital finance ecosystem.

He noted that trust in digital banking remains fragile despite widespread adoption of mobile apps and online payment channels. “One cybersecurity incident can erase years of progress,” he said, adding that frequent customer complaints, rising fraud cases and recurrent system lapses motivated his concerns about how security affects user confidence.

His investigations examined feedback from bank customers, staff and IT experts to assess how information accuracy, responsiveness and perceived security influence digital banking usage. It found that safety is just as important to users as transaction speed, and that confidence drops sharply when customers feel unprotected.

Recent studies highlight that banks and financial institutions are facing increasingly sophisticated and frequent cybersecurity threats in 2025, with major impacts including data breaches, operational disruptions, and financial losses. The main risks identified include ransomware attacks, supply chain vulnerabilities, social engineering, insider threats, and mobile banking malware, all of which are growing in both volume and complexity.

Ologun added that many consumers are less concerned about app features and more focused on how banks respond when issues arise. He said customers expect prompt communication, effective complaint resolution and clear assurance that their accounts and data are secure.

He also raised concerns about the growing anxiety over cybercrime, including fears of unauthorised withdrawals and dissatisfaction with how some banks handle breach-related complaints.

Despite the challenges, Ologun maintained that there is room for improvement. He recommended stronger digital customer support, clearer communication on security risks and sustained investment in technologies that reinforce user trust.

Cybersecurity, he said, should be treated not merely as a technical requirement but as a core part of customer experience.

“A secure digital banking system empowers customers and drives economic growth,” he said. “Trust is the foundation, and cybersecurity is how we protect that foundation.”

Justice has over three years experience spanning digital and print media. At The PUNCH, he currently covers the automobile sector with special interest in features and industry analysis.

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