Nigeria CBN Asks Banks to Invest More in Cybersecurity to Safeguard Depositors
This request was made at a panel discussion on "Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment" at the present Nigeria Economic Summit in Abuja by Dr. Adetona Adedeji, acting director of Banking Supervision.
This request was made at a panel discussion on "Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment" at the present Nigeria Economic Summit in Abuja by Dr. Adetona Adedeji, acting director of Banking Supervision. He noted the quick advancements in the banking industry, especially in the area of electronic banking, and stressed the necessity for banks to keep one step ahead of lawbreakers to shield clients' deposits.
Dr. Adedeji said, "There has been a lot of innovation in the banking sector today, especially in e-channels." We do need a strong risk management system. Every bank is expected to put in place a robust cybersecurity framework. "We want customers to be protected from criminals," he went on. These are the people we have been trying very hard to persuade 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.”
"We want banks to 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," Dr. Adedeji said, reiterating the significance of establishing secure systems.
He talked about the CBN's efforts to fight inflation and said that although the bank wants to see inflation decline, it also recognizes that businesses must continue to operate. "We recognize the impact this has on businesses, but our focus is on using interest rate increases to target inflation," he said. "We wish to avoid experiencing hyperinflation. We merely beg for your understanding, as the CBN's actions are all intended to reduce inflation.
Also said Dr. Adedeji, "Our present priority is price stability, but we are aware that businesses must continue to function.” "Rent seekers are facing challenges, as we strive to achieve equilibrium," he said about the CBN's foreign exchange strategy. To address the relationship between state liquidity and FAAC (Federation Accounts Allocation Committee) releases, he also emphasized the ongoing collaboration with fiscal authorities. Additionally, he brought attention to the unusual demand for foreign exchange that arises each time FAAC distributes monthly revenues to the three tiers of government.
