CBN Intensifies Oversight on Cyber Risk, Terror Financing

The Central Bank of Nigeria (CBN) has intensified its oversight of financial institutions, issuing warnings on both growing cybersecurity threats and the critical need to combat terrorism financing. Officials emphasized that the interconnected nature of the financial system means a single cyber incident or vulnerability at a third-party vendor could potentially disrupt the entire sector. Dr. Rakiya Opemi Yusuf, Director of the Payments System Supervision Department at the CBN, highlighted these concerns on Wednesday during a banking and finance conference in Abuja. She noted that the increasing reliance on fintech companies, payment service providers, and cloud operators creates new pathways for cyber incidents to spread. Yusuf warned of a "one-fire effect" where a vulnerability in one institution or provider could impact numerous interconnected entities, threatening overall financial stability. She urged financial institutions to look beyond their internal systems and rigorously assess the resilience of their technology vendors and external partners. In parallel, the CBN has elevated terrorism financing supervision to a current priority.