October 4, (THEWILL) – The Central Bank of Nigeria (CBN) has stressed the urgent need by the banking industry to invest continuously in cybersecurity, data protection, disaster recovery and business continuity, as more financial services move to digital channels.
The apex bank said banks must be innovative which brings opportunities, but public trust depends on customers being able to transact securely and access their funds reliably, including when systems come under pressure.
The Deputy Governor, Corporate Services, CBN, Dr. Muhammad Sani Abdullahi, made this assertion in his remarks at the 38th Seminar for Finance Correspondents and Business Editors in Abuja, on Tuesday, September 29, 2026.
Dr. Abdullahi noted that aside from individual banks’ investment in cyberspace, the CBN, supervisory approach will continue to emphasise risk-based supervision, macroprudential surveillance and enhanced stress testing.
According to him, the financial sector coordination, consumer protection, fintech regulation and support for responsible innovation will remain important, alongside crisis preparedness and resolution planning.
“As the Governor has consistently emphasised, preserving monetary and financial stability requires continued vigilance. We must remain forward-looking, data-driven and responsive to developments at home and abroad.
“The wider economy should see the benefit over time. Agriculture, manufacturing, services and infrastructure need finance suited to their cash flows and investment horizons. Smaller firms and households need dependable payments, appropriate products and fair treatment.
“We should assess recapitalisation by the quality of banking services and productive lending it supports, as well as by the amount of capital raised.”
That benefit, he said, must reach rural communities, women and young entrepreneurs, as well as customers already served by the formal financial system.
He noted that consumer protection and financial inclusion are integral to resilience, adding that a system that people can access, understand and trust is better able to support lasting growth. Stronger bank balance sheets should translate into wider access and better service.
According to him, “The business community also has responsibilities. Greater financing capacity can support productive investment in technology, energy, transportation and power, alongside agriculture, manufacturing and other services.”
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Abdullahi said the theme of the conference, ‘Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era,’ was perfectly timed as it gives the chance to step back and look at how the recent banking sector recapitalisation actually fits into the broader reforms being driven over the past three years.
He recalled the pre-reform era when multiple windows operated right alongside a massive parallel market, which made it incredibly difficult for businesses to know which rate would apply to them or when foreign exchange would even be available.
As a result, the gap between the official and parallel rates averaged over 60 percent in 2022 and exceeded 100 percent at points late in the year.
He noted that the World Bank estimated that the implicit subsidy created by this exchange rate setup cost us about 3 percent of our GDP in 2022.
“The pressure extended to our external reserves. The gross figure did not tell the whole story. After accounting for identified short-term obligations, the Bank’s data put net usable reserves at US$859 million in the second quarter of 2023. Outstanding foreign exchange forward claims had also grown to more than US$7 billion, adding to uncertainty for businesses and investors.
“At home, monetary conditions made the situation harder to manage. Ways and Means financing had reached about ₦26.6 trillion by 2023, while legacy development finance exposures exceeded ₦10 trillion. The resulting liquidity made inflation harder to contain and weakened the effect of monetary policy.
“Meanwhile, capital inflows had fallen, and uncertainty over access to foreign exchange made it difficult for businesses to price goods, plan investments and meet their obligations.
“Each problem added to the others. Administrative allocation weakened price signals and created opportunities for arbitrage. Excess liquidity increased pressure on the foreign exchange market. Uncertainty then pushed more activity away from the formal market, placing further strain on confidence.
“We could not resolve these problems one at a time. The foreign exchange market needed clearer prices and more reliable trading arrangements, but those changes would be difficult to sustain without tighter control of liquidity. We also needed stronger banks capable of operating through the adjustment. That was the thinking behind the reforms that followed.” he said.
According to him, the first step in the foreign exchange market came in June 2023, when the Bank consolidated the existing windows and moved towards a willing-buyer, willing-seller framework.
He recalled that the apex bank subsequently removed the restrictions that had kept 43 categories of imports from the official market and reviewed the outstanding forward claims. The claims found to be valid were settled, addressing a major source of uncertainty for businesses and investors.
He assured the CBN will continue to pay close attention to governance, asset quality, liquidity and large exposures. We will also expect banks to protect customer data, maintain reliable payment services and recover quickly from disruptions. A stronger balance sheet must be matched by stronger management of risk.
