CBN to banks: Implement strong cybersecurity framework to protect customers’ funds

The Central Bank of Nigeria (CBN) has urged banks in the country to make significant investments in cybersecurity to safeguard depositors’ savings from hackers.

Olayemi Cardoso, CBN governor, spoke during a panel discussion on ‘Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment’ at the ongoing Nigeria Economic Summit (NES) in Abuja.

Cardoso, represented by Adetona Adedeji, CBN’s acting director of banking supervision, said there is so much innovation happening within the banking sector, especially in the area of electronic banking.

He said even though the innovation adds value to customer’s experience by making banking seamless, banks must stay one step ahead of criminals to prevent customers from losing their deposits.

“There has been a lot of innovation in the banking sector today, especially in e-channels,” Adedeji said.

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

“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.”

Cardoso added that banks should 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”.

On October 8, the CBN reiterated its commitment to maintaining a stable financial system while ensuring the safety of depositors’ funds.

According to a statement by Hakama Sidi Ali, the acting director of corporate communications at CBN, the apex bank has introduced early warning systems to proactively detect and address emerging risks, allowing the CBN to provide timely solutions to any foreseen issues.

CBN TO REDUCE INFLATION THROUGH INTEREST RATE HIKE

Speaking further on why the CBN increases the monetary policy rate  (MPR) despite a drop in inflation, Cardoso said while the bank aims to reduce inflation, it remains mindful of the need to keep businesses operational.

“We are focused on targeting inflation through interest rate increases, but we understand the impact this has on businesses,” the director said. 

“We don’t want to reach a state of hyperinflation. We simply ask for understanding; all the policies the CBN has introduced aim to help mitigate inflation.

“Our current priority is price stability, but we are aware that businesses must continue to function.”

The CBN governor also said the bank is ensuring that it leaves no stone unturned to curb inflation. 

Cardoso pleaded with Nigerians to trust the policies, adding that “whatever decision or policy rolled out is crucial and will help us to achieve stability”.