Senator Mukhail Abiru stresses the need for Nigeria’s legislative frameworks to evolve in response to emerging cybersecurity risks and the rise of fintech. His call highlights the balance between fostering innovation and strengthening regulatory oversight in the financial sector.
Emerging risks related to cybersecurity and the rapid rise of fintech and digital financial services are pushing Nigeria’s legislative frameworks to evolve, according to Senator Mukhail Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions.
Speaking recently at a retreat in Lagos organised by his committee and the Nigeria Deposit Insurance Corporation (NDIC), Senator Abiru stressed the importance of equipping regulators, such as the Central Bank of Nigeria (CBN) and NDIC, with the necessary tools to effectively monitor and regulate the financial sector.
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He further explained that fostering innovation and competition within the industry would enable Nigeria to capitalise on the emerging opportunities offered by digital banking and fintech.
“While fintech offers great promise, it is essential to recognise the risks that come with it. Cybercrime and data breaches are increasingly threatening the sector,” Senator Abiru remarked.
He highlighted the importance of legislative interventions to create strong cybersecurity frameworks that safeguard both financial institutions and sensitive personal data.
Recent incidents in the banking sector involving cybersecurity breaches have amplified the need for greater investment in protection measures.
Senator Abiru called for more stringent regulatory oversight to keep pace with the evolving nature of digital banking.
Although acknowledging the resilience of Nigeria’s banking and insurance sectors, Senator Abiru emphasised that resilience must be dynamic and continuously reinforced.
Nigeria’s financial institutions have successfully withstood numerous challenges, including economic downturns, the COVID-19 pandemic, and forex market instability, thanks to strong regulatory frameworks like the Nigerian Deposit Insurance Corporation (NDIC) Act and the Banks and Other Financial Institutions Act (BOFIA).
“Resilience is not static; it requires constant adaptation and reinforcement,” he said. The senator highlighted the role of effective legislative intervention in anticipating future challenges and addressing them proactively, ensuring that Nigeria’s legal frameworks remain forward-looking and capable of addressing both current and emerging risks.
Senator Abiru also called for a collective approach to building a resilient financial system, stressing the need for collaboration among lawmakers, regulators, fintech companies, the banking and insurance sectors, and the general public.
He encouraged stakeholders to actively participate in shaping the future of Nigeria’s financial sector through insightful contributions, to help enhance its resilience and inclusivity.
In conclusion, Senator Abiru underscored the crucial role of a strong, collaborative effort to create a financial sector that not only withstands external shocks but also serves as a key driver of Nigeria’s economic growth.
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