Ahead of Nigeria’s open banking implementation in August, a cybersecurity expert, Mr Anthony Fakiyesi, has emphasised the need to prioritise robust cybersecurity protocols to safeguard sensitive information and protect the financial ecosystem’s integrity.
Fakiyesi, also a cloud-security consultant, made this known in an interview with Reporters lately in Lagos.
Reports has said open banking mandated by the Central Bank of Nigeria (CBN) means that banks in Nigeria are now required to share customer data with other authorised financial institutions and third-party providers.
This sharing would be done through a standardised Application Programming Interface (API) under the framework established by the CBN.
According to the expert, while open banking promises innovation, inter-operability and financial inclusion, Nigeria must confront significant challenges – cyber threats and data privacy violations.
He said that the implementation would open the door to services such as account aggregation, personalised financial management and seamless cross-platform transactions.
Fakiyesi said that with ISO 20022 as its backbone, the system brought structured, rich data formats that facilitated smarter fraud detection and cross-border functionality.
“In spite of its benefits, its introduction into an already vulnerable cybersecurity landscape raises serious concerns.
“Nigeria’s financial institutions lost over N59 billion to fraud in 2023 alone, and cyberattacks are increasingly sophisticated, with phishing, SIM-swapping, banking trojans, and business email compromise continuing to plague both consumers and banks.
“As data moves beyond the control of traditional banks and into the hands of multiple third-party providers, the risk of data breaches grows exponentially,” he said.
Ahead of Nigeria’s open banking implementation in August, a cybersecurity expert, Mr Anthony Fakiyesi, has emphasised the need to prioritise robust cybersecurity protocols to safeguard sensitive information and protect the financial ecosystem’s integrity.
Fakiyesi, also a cloud-security consultant, made this known in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
Report has said that,open banking mandated by the Central Bank of Nigeria (CBN) means that banks in Nigeria are now required to share customer data with other authorised financial institutions and third-party providers.
This sharing would be done through a standardised Application Programming Interface (API) under the framework established by the CBN.
According to the expert, while open banking promises innovation, inter-operability and financial inclusion, Nigeria must confront significant challenges – cyber threats and data privacy violations.
He said that the implementation would open the door to services such as account aggregation, personalised financial management and seamless cross-platform transactions.
Fakiyesi said that with ISO 20022 as its backbone, the system brought structured, rich data formats that facilitated smarter fraud detection and cross-border functionality.
“In spite of its benefits, its introduction into an already vulnerable cybersecurity landscape raises serious concerns.
“Nigeria’s financial institutions lost over N59 billion to fraud in 2023 alone, and cyberattacks are increasingly sophisticated, with phishing, SIM-swapping, banking trojans, and business email compromise continuing to plague both consumers and banks.
“As data moves beyond the control of traditional banks and into the hands of multiple third-party providers, the risk of data breaches grows exponentially,” he said.
Fakiyesi said that Nigeria’s open banking journey must prioritise establishing an accreditation system for third-party providers to ensure a secure rollout.
He said that Nigeria must also mandate strict data protection policies, create regulatory provisions for customer reimbursement and dispute resolution, and launch cybersecurity awareness campaigns for consumers and providers.
He encouraged investment in advanced threat detection and infrastructure hardening as well as capacity strengthening of NDPC, CBN and other oversight bodies to monitor compliance.
“Open banking is undoubtedly a game-changer as it can democratise financial services, drive fintech innovation and deepen digital inclusion.
“However, without security by design and robust governance, it could expose Nigeria to new waves of cyber threats and data privacy violations.
“If done right, Nigeria has the potential not only to modernise its financial ecosystem but also to set a benchmark for open banking in emerging markets where innovation and cyber resilience must grow side-by-side,” he said.
NAN/Jide Johnson.