5 Banks Budget N222 Billion for Cybersecurity to Ensure Safety

In a significant move aimed at reinforcing digital safety, five leading Nigerian banks have collectively earmarked N222 billion to enhance their cybersecurity infrastructure. This decision follows the Central Bank of Nigeria’s (CBN) recent directive, which sets new capital requirements to bolster financial stability and security.

This collective budgetary commitment comes at a crucial time as the financial sector faces increasing threats from cyber attacks, which have escalated in complexity and frequency. Only days ago, GTB reported an attempt to compromise its website. However, the bank assured that the attack was thwarted and no customer data was compromised.

The IMF’s Global Financial Stability Report highlights the growing risk and potential severe losses from such cyber incidents, emphasizing the critical need for robust cybersecurity measures. 

By investing heavily in their technological and cybersecurity infrastructures, these banks not only comply with regulatory requirements but also enhance their resilience against potential cyber threats, safeguarding both their operations and their customers’ interests.

Guaranty Trust Holding Company (GTCO)

GTCO stands out with the highest allocation towards technological advancements. The group plans to invest N98.50 billion in upgrading its technology infrastructure. This substantial sum will focus on implementing a new core banking application, upgrading associated hardware, and enhancing network architecture. Additionally, GTBank will allocate N15 billion specifically for improving information security and fraud detection capabilities.

Access Holdings

Access Holdings has designated N68.62 billion from its rights offer for IT enhancements, with particular emphasis on cybersecurity. The investments include N41.17 billion for network infrastructure and N27.48 billion for advancing cybersecurity measures. This funding is part of Access Holdings’ broader strategy to expand its local and international operations.

Zenith Bank Plc

Zenith Bank is channeling N19.85 billion of its proceeds towards a comprehensive overhaul of its IT systems. The funds will cover costs for new computer hardware, software licenses, and network upgrades, with an additional N2.98 billion earmarked for bolstering its cybersecurity architecture. This investment will support the bank’s ongoing efforts to enhance operational capabilities and seize emerging market opportunities.

Fidelity Bank

Fidelity Bank plans to allocate N19.01 billion towards its IT infrastructure, representing 20% of its net proceeds. This includes a focused investment of N9.03 billion on cybersecurity enhancements, alongside N7.60 billion for software licenses and hardware, further strengthening its digital and physical network infrastructure.

FCMB Group

FCMB Group has set aside N16.22 billion for technology upgrades, of which N11 billion will be invested in IT infrastructure and N5.23 billion in cybersecurity improvements. Despite being the smallest allocation among the five, it reflects FCMB’s commitment to safeguarding client data and enhancing service reliability.