Cybersecurity: The double-edged sword of digital growth in Nigeria

When Wale Ameen founded MyDatastream, a messaging platform that helps businesses with their communication needs, he did not foresee himself falling victim to a cyber-attack.

He is just one of the thousands of entrepreneurs in Nigeria today who are building solutions to the growing needs in the tech space. He launched his platform, and within one year, he has recorded remarkable growth. This doesn’t mean he did not face some challenges, it was difficult for him to scale up as there were already big players in that space, and there was less finance to rub shoulders with the big boys.

Rising competition from many other players, stringent policies, clients backing down due to harsh economic realities, and personal needs are other issues he faced in the early days of his startup. Despite these problems, Wale kept pushing, refusing to give up, and believing things would improve.

However, one thing he did not envisage was a cyberattack hitting his startup. Just overnight, his platform was attacked and he lost millions of naira in a twinkling of an eye. The hit was so big that it set him back for a while, forcing him to take a break to re-strategise.

This is just one of the experiences of many other entrepreneurs and startups, some of whom may not be bold enough to share their stories.

Nigeria, Africa’s largest economy, is rapidly embracing digital transformation. The country’s burgeoning tech industry, fueled by innovative startups and investments, has made cybersecurity a pressing concern. The threat landscape is complex, with hackers exploiting vulnerabilities in Nigeria’s digital infrastructure.

Like many other places, Nigeria’s cybersecurity landscape is fraught with dangers. According to the Nigerian Communications Commission (NCC), the country lost ₦2.5 trillion ($6.5 billion) to cybercrime in 2020 alone. Phishing attacks, malware, and ransomware are common threats, targeting individuals, businesses, and government agencies.

A report in 2021 from the Federal Bureau of Investigation (FBI) listed Nigeria as the 16th country worst affected by cybercrime. In another report, the NCC says Nigerians lost about N12.5 billion to financial crimes linked to the telecommunications industry between 2020 and 2023.  The NCC added that the country loses an estimated $500 million per annum to cybercrime.

Globally, an estimated figure of $600 billion is lost to cybercrime each year, and that number keeps increasing. However, experts argue that this challenge presents opportunities for innovation, job creation, and economic growth.

Lanre Basamta, co-founder of Optimus AI Labs, speaking at the 2024 Nigeria Fintech Festival says with the development of artificial intelligence, hackers from anywhere in the world can carry out a cyber-attack on any establishment with the use of a bot. He said that in the past, someone may steal payment card details and use them dubiously, but today, a person could steal a payment card, and feed the card details to the AI bot, and those details could compromise the cards of millions of other customers.

But the biggest threat is not from the outside but rather from someone on the inside of the organization who knows how the system works. These are employees, the gatekeepers who work within the company, understand the system and know the loopholes.

Despite the threats, Nigeria’s cybersecurity landscape presents significant opportunities. The country’s young population, with over 60% under 30 years old, offers a vast talent pool for cybersecurity professionals.

The number of cybersecurity firms is increasing, making it safer to run businesses within a secured space. This opportunity helps businesses to grow and create as many jobs for professionals in the field. Also, there is the opportunity for relevant government agencies to establish a cybersecurity department and equip it with latest technology, and hire experts to train staff.

There is a need to invest in education and continuous training programs because more hands are needed. Threats are increasing but the manpower is few. It is also important to develop a comprehensive national cybersecurity strategy. The federal government must step up in this direction, lead by example and play a regulatory role.

In addition, public-private partnerships should be encouraged, there is a need for collaboration between the government and private sectors. The goal should be to join hands to fight cyber fraud and strengthen cybersecurity, and not to outperform one another.

As Nigeria navigates its digital growth, cybersecurity continues to play a critical role. By embracing the challenges and opportunities, and investing in education, infrastructure, and innovative solutions, the country can navigate through the threats, unlock opportunities in the digital economy, and establish itself as a leader in cybersecurity innovation and expertise.

Israel Ojoko, a journalist and data analyst, can be reached via [email protected]