CBN warns banks, Fintechs against rising cybersecurity, third-party risks

The Central Bank of Nigeria (CBN) has directed banks, fintech companies and other financial institutions to strengthen their cybersecurity frameworks and guard against growing risks associated with third-party technology providers.

The apex bank said the increasing dependence of financial institutions on fintechs, payment service providers, cloud operators and other technology vendors was creating new pathways for cyberattacks and systemic disruptions within the financial sector.

The Director of the CBN’s Payments System Supervision Department and Chairperson of the Nigeria Electronic Fraud Forum, Rakiya Yusuf, raised the concern on Wednesday at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.

Yusuf spoke during a session titled, “Navigating Cyber and Systemic Risks in the AI-Driven Future of Banking: Implications for Financial Stability and Business Resilience.”

READ ALSO: CBN raises 364-Day T-Bill rate to 17.59% despite N4.4tn demand

She warned that a security breach or technological weakness in any bank, fintech, payment service provider or technology vendor could have far-reaching consequences because of the increasing interconnectedness of Nigeria’s financial ecosystem.

According to her, a vulnerability in one institution could quickly spread to others, creating a “one-fire” effect capable of threatening the stability of the wider financial system.

She therefore urged financial institutions to expand their risk-management approach beyond protecting their internal infrastructure to include stronger safeguards across their entire network of technology partners and service providers.

Yusuf stressed that financial institutions must also prioritise resilience, particularly as artificial intelligence and other emerging technologies become increasingly embedded in banking and payment systems.

“Resilience is not just about preventing an incident. It is about the ability to continue delivering critical services during disruption and to recover quickly afterwards,” she said.

The CBN official’s warning comes as Nigeria’s financial sector experiences rapid digitalisation, with banks and fintech companies increasingly relying on interconnected platforms and external technology providers to deliver payment, lending and other financial services.

Industry stakeholders say the growing digital ecosystem has improved financial inclusion and transaction efficiency but has also increased the potential impact of cyber incidents, making coordinated cybersecurity and third-party risk management increasingly critical to financial stability