Adeyemi Adesola
In today’s fast-paced world of business, cybersecurity is not an option anymore. Cybercriminals are increasingly targeting Nigerian companies both large corporations and small startups are at increased risk. Affected businesses are susceptible to disruption of operations, financial loss and damage to business reputation as a result of cyber-attacks. Given that Nigeria’s organizations are increasingly adopting digital and conducting online operations, now becomes a time to raise awareness and ensure that risk is also managed. This article outlines the major cyber threats that affect Nigerian businesses; the effects of these threats and how businesses can protect themselves against these threats and the role of the Nigerian Government and collaborations in mitigating these threats
The Rise of Digital Businesses in Nigeria
As Africa’s most populous nation and largest economy, Nigeria is going digital. The country with over 200 million people, a youthful population and growing internet penetration also presents itself as the perfect place for business opportunities and technological advancement. Technology is being used by multiple industries to simplify operations, improve customer experiences, and appropriate in the market. The rapid adoption of e-commerce platforms; FinTech solutions and cloud services speaks volumes of this digital economy which is thriving in Nigeria. COVID-19 forced many organizations to embrace work from home, e-commerce and other digital means of interacting with their customers as well as making payments. Nigeria is today home to a fast-growing tech hub popularly known as the “Silicon Valley of Africa” where various tech-based startups as well as existing firms are pushing forward technological advancement across various sectors.
Nonetheless, this digital growth has exposed Nigeria to become a preferred hunting ground for internet fraudsters, cyber-criminals or threat actors. With millions of users, the growing dependence of the population on digital transactions, and changes in the digital architecture make her a honey spot for attackers. Whether it is a stolen database, a ransomware attack, malware attacks, phishing scams or any other kind of cyber threat, Nigerian businesses are under threat from highly evolved cyber-criminals, whose operation can lead to financial and reputational losses. Because of the high level of FinTech activity in Nigeria, the country ranks among the most attractive for cybercriminals.
However, digital transformation brings along with it an enormous opportunity for innovation, and at the same time, a major concern of security threats. Proactive measures of protection are not only necessary to ensure assets’ security but also to enhance customers, partners and investors’ confidence. Security-conscious firms can market themselves as strong stakeholders in a networked economy thus improving competitiveness. With the Nigerian economy increasingly Digitized, Ensuring the incorporation of robust cybersecurity programs into development processes will continue to form the bedrock for its resilience.
Key Cyber Threats Facing Nigerian Businesses
Ransomware Attacks
In a ransomware attack, malicious actions gain access to confidential business data, encrypt the company’s data, and then ask for a certain amount of money before they can restore access to the data. This kind of attack is on the increase in Nigeria, mainly in key sectors like banking, health and education. Businesses lose crucial customer data, suffer reputational damage, and huge financial losses due to sanctions and lawsuits that follow. The lack of a reliable backup system during ransomware attacks causes a more devastating effect as businesses are left with no option but to pay the huge ransom demanded by cyber-criminals. The best approach to protecting against ransomware is having several layers of defence such as data backup that is often kept offline, the use of anti-ransomware software, network segmentation, endpoint protection software such as antivirus, antimalware, and intrusion prevention and detection systems. It is also recommended that organizations perform tabletop exercises to consequently enhance the overall readiness of the organization to ransomware attacks and response rates. Ransomware attackers have also shifted their focus to companies’ supply chains, where they seek weaknesses in vendors’ software to infiltrate large companies. Third-party risk is now a continually emerging risk that Nigerian companies must assess and ensure that they hold their third-party contractors to adequate cybersecurity standards.
Phishing Scams
Phishing refers to emails or messages that are created to make people reveal personal information such as passwords or bank statements. Small and medium businesses in Nigeria particularly fall prey to this form of attack; attackers are individuals posing as reputable organisations to gain access to the firm’s system and download information or install malicious software. The most common forms of phishing in Nigeria are email phishing, smishing, vishing, and spear phishing, all with one goal which is to deceive the users to click on a link thereby compromising the business internet networks or revealing sensitive information like passwords, usernames etc. Modern phishing attacks are much more subtle, and with fake websites and personalized emails, even the most careful staff can be duped. These schemes generally work by appealing to the victim through using their fear, urgency or curiosity; usually leading the victim to click on a link that downloads a virus or opens an attachment that does the same. Sometimes the criminals simply imitate legitimate government authorities or the offices of famous companies, which add credence to the fake offers. But today’s cybercriminals are now going a step further and using social media to learn more about the people they are targeting. As a result, they can craft a more personalized message that is even more realistic.
To counter this threat, companies should use email filtering tools to prevent phishing attacks from reaching the staff. They also include ways of effectively creating awareness of these threats and conducting simulations regularly to make the workforce able to identify phishing emails. Additionally, a culture of scepticism and verification is shown to have a great ability to reduce phishing risks beyond technical solutions. This kind of encouragement for checking suspicious messages and having a clear way to report what are exactly phishing attempts helps businesses win the fight against attackers.
Business Email Compromise (BEC)
In Business Email Compromise scams, cyber criminals pose as senior execs, trusted partners coax employees into giving up money or confidential information. However because these scams can take months of meticulous planning and cause serious financial harm, it is hard for law enforcement agencies to take action against them. For instance, attackers could study any company’s internal communication style to craft emails that people send, ensuring employees cannot tell their frauds apart. A combination of technology and policy is needed to prevent Business Email Compromise (BEC). Therefore, businesses should put email authentication tools such as Domain-based Message Authentication, Reporting, and Conformance (DMARC), Sender Policy Framework (SPF) and DomainKeys Identified Mail (DKIM) in place to identify the sender. Other things you need to have in place are financial transaction protocols like requiring dual approval of large payments or making sure requests are verified by phone calls or in person. Business organizations should train employees on how to detect email scams.
Insider Threats
Not every cyber threat comes from the outside. Employees can inadvertently or intentionally put a company at risk. Because they often bypass standard security measures, insiders are particularly dangerous. An employee may accidentally download malicious software or intentionally ‘leak’ sensitive information. To address insider threats, businesses need some combination of trust, monitoring and training. Implementing access controls such as Role-Based Access Controls (RBAC), Mandatory Access Control (MAC) Discretionary Access Control (DAC) and Separation of Duties policies ensures that employees have permission to access data that are required to perform their job. Also, implementing the Principle of Least Privilege ensures that employees have the minimum required permissions to perform a task. While these help to reduce the risk of insider threat, a comprehensive approach such as also regular audits, monitoring of employee activities and endpoint security needs to be implemented to detect unusual behaviours. Further, the creation of an environment consisting of a positive workplace culture will make it less likely that a malicious insider will act. Other means to minimize insider threats by taking proactive measures such as conducting exit interviews, revoking access to business resources outside of business hours and ensuring that employees leaving have their access disabled. Organizations can also have anonymous means through which employees can report suspicious activities of employees without fear of reprisals from their fellow employees.
Weak Security for Remote Work
More companies are adopting remote work but don’t have that strong security for their laptop or smartphone. These gaps are exploited by cybercriminals to get access to your business systems and to steal data. To make sure remote work environments are secure, businesses need to offer their employees company-issued devices, configured with up-to-date security software to secure remote work environments. Employees should be discouraged from connecting to unsecured Wi-Fi networks to minimize the risk of cyber-attacks. There should be clear remote work guidelines, like the need to use a VPN. If a company does have a large number of employees that have access to the Internet, employers should look into implementing mobile device management (MDM) solutions to keep an eye on and protect their devices. Specifically providing employees with regular security training focused specifically on working from home means employees know the risks involved in working remotely. Also, periodically business cybersecurity teams should audit employers’ devices to ensure it satisfy security policies.
Supply Chain Attacks
One of the most common attack vectors on which attackers rely is targeting a company’s partners or suppliers to gain access to their system. Such an attack can be hard to spot, and it can destroy an entire network of businesses. To minimize supply chain attacks, businesses need to evaluate the process of their partners regarding cybersecurity. Regular vendor risk assessment and mandates from third parties to comply with security standards can prevent vulnerabilities. The supplier must also be contractually obligated to inform the business immediately of any breaches that might affect the business.
To minimize the impact of supply chain attacks, Nigerian business needs to reduce dependence on a single vendor because it helps minimise the impact of a single breach from supplier software crippling the entire business operation.
Advanced Persistent Threats (APTs)
An Advanced Persistent Threats (APT) attack is a long-term, targeted attack in which cybercriminals can infiltrate a network and stay undetected for a relatively long time. They want to steal sensitive data or disrupt operations, of which the usual targets are finance industries such as banks, energy companies, hospitals, government agencies or telecommunications companies. However, as attackers get more sophisticated, Nigerian businesses continue to become more vulnerable. To combat APTs, businesses need to focus on continuous network monitoring and anomaly detection. Endpoint detection and response (EDR) systems are sophisticated tools that can detect unusual behaviour, before an actual attack, and prevent attackers. Businesses can stay protected against APTs by regular updates, and patching of the software. Participating in threat intelligence sharing platforms and collaborating with cybersecurity researchers would be a good source of information about what tactics APT operates on. Businesses need to also conduct red team exercises to test what it would take to emulate APT scenarios to improve their defences and incident response.
How Cyber Threats Affect Nigerian Businesses
Financial Loss
Like any other criminal activity, cyber-attacks can cost any business firm a lot of money. Offenders can transfer money from company accounts or simply launch a blackmail campaign by demanding some amount of money. Even when an organization has to fend off an attack, the process is not cheap since firms have to hire professionals, strengthen their IT infrastructure and provide detailed reports to investors and users. The fines given if a business doesn’t follow laws of data protection such as the Nigeria Data Protection Regulator (NDPR) further increase the financial cost. In other larger companies, such costs can run into millions of naira while smaller businesses will go bankrupt.
Reputation Damage
A cyber-attack on a company can be very damaging to the company’s reputation. Consumers resort to vouchering because they may be sceptical about the business if their details are stolen. This can result in little sales and extreme difficulty in reaching out to new customers. The impact is infinitely harder for small business outfits which are usually ill-equipped to deal with the ensuing repercussions. It can take a business many years to regain the public’s trust and to overcome the reputational damage resulting from cyberattacks, and customers leaving the company for a new competitor.
Operational Disruption
Cyberattack incidents can have a severe disruptive impact on the company’s business processes, and productivity and bring direct monetary damage in the form of lost revenues generated from delayed production and actual losses that have to be incurred while recovering from a hack. For example, the ransomware attack is likely to lock down certain processes, and key infrastructures and organizations may remain closed for days or even weeks. Such downtime normally leads to failure to meet deadlines, dissatisfied customers and disruptions in the entire supply chain. Companies must then use more money and time to try and fix these problems, which erodes both effectiveness and productivity. Companies that mostly depend on smooth operations, including manufacturing fortunes or logistic providers, are likely to be impacted by these disruptions.
Legal Issues
The inability to protect information or adhere to the legal requirements surrounding data puts businesses at high legal risks. Possible loss or leakage of such information and data could result in lawsuits by customers or employees. An instance may result in legal suits from consumers and workers whose information has been released to the public. Also, non-compliance with regulations such as the Nigeria Data Protection Regulation (NDPR) attracts appropriate penalties, including sanctions. Various regulatory agencies may initiate probes into the situation and set even higher standards of protection, which, of course, means increased expenses for company protection. Domestic businesses may also lose partnership if they are unable to conform to global data protection laws like the European Union General Data Protection Regulation, thus, restricting their business growth in international markets.
Loss of Competitive Advantage
Cyber-attacks are dangerous as they negatively impact the competitive position of the firm due to the compromise of its data. Hackers may gain and sell essential organization information such as trade secrets, product ideas or even customer information to a competitor. This loss can erode the firm’s position it holds within the marketplace. Also, the companies targeted by cyber threats more often redirect their funds to security, which harms the company’s internal investment in innovation. And in industries, in which ideas or patents are a key driver of performance, the loss of such assets will be indisputably catastrophic for the company in the long run.
How Nigerian Businesses Can Stay Safe
Regular Security Reviews
Organizations should conduct vulnerability scans regularly to detect flaws in a firm’s system that hackers can take advantage of. These should involve regular software updates, penetration tests, and surveillance to check for any strange behaviour on the network. Using independent auditors who have no idea of the business’s internal IT infrastructures to review IT policies and overall organization security efficiency may bring new eyes to the problem and may make sure that nothing is missed. After the mentioned reviews, digital security is important for companies, and it needs to be addressed immediately. Businesses should make policies that address specific threats, framework changes, and quarterly assessments to test the effectiveness of the security policies.
Employee Training
Employees are usually the target of phishing, scams, and other similar tricks. Such threats can, however, be minimized when the staff of the organization is trained to identify such threats and act appropriately. Organizations need to provide more highly participative and fun-oriented activities, like games or simulations to increase the rate of knowledge retention and program success in fighting phishing attacks. Another way is to make regular reports, inform people about suspicious activities and hold monthly training to refresh the material learned. Managers should continuously raise awareness of cybersecurity to ensure people understand the significance of the issue, and the use of incentives for the reporting of probable threats will foster a culture of security compliance.
Use Multi-Factor Authentication (MFA)
Nigerian businesses should adopt the MFA policies for all the crucial systems and accounts. Multi-factor authentication (MFA) adds an extra layer of protection by requiring multiple verification means. This is done so that no matter how your password is compromised, it does not allow unauthorized access. It is recommended that Nigerian businesses implement MFA in all its important systems and accounts. Further up advanced methods like adaptive authentication that take into consideration things like the type of device being used or location of login can add to the enhancement of the security measures. Moreover, educating employees on why MFA is important and going through some of the usability concerns can increase its adoption to strengthen security across the organization.
Secure Remote Work Devices
As remote work becomes more common, companies have a greater need for strong security around employee devices. This includes antivirus software, encrypted data storage, and secure virtual private networks, (VPNs). This needs to be taken care of by clear remote work policies that guide employees on what safe practices to follow, like not connecting to public Wi-Fi. In essence, regular communications with remote workers to discuss their security practices and incentives for compliance would keep defences strong. Policies can also be updated based on new tools or trends to reduce risk further, and employees can be encouraged to not do personal tasks on work devices.
Adopt a Zero Trust Approach
With Zero Trust, nobody is automatically trusted inside or outside the organization. Systems are restricted until all the users and devices are verified. This approach cannot be implemented without two such tools, identity verification and access management solutions. Identity verification ensures that an employee or user is who they claim to be while access management ensures that only users have the authorization to access data that is being requested. As with any other topic, Regular updates of Zero Trust policies help keep businesses up to date with emerging threats and advancement. Combining Zero Trust with real-time monitoring tools and security frameworks like SOC2 would strengthen the security system to an adaptive and dynamic one able to respond to threats as they occur.
Prepare for Cyber Incidents
It’s important to plan in the event of a cyber-attack to mitigate the total damage caused. This plan has to describe how to find and mitigate attacks, and how to recover from them. Simulations or drills can be performed regularly, which can help employees know how effective the incident plan is and whether the organization is prepared for real incidents. Designating the exact team to react in case of an incident brings swift and effective results. Post-incident reviews can improve future responses, and participation in industry-wide cybersecurity exercises will also teach you how to become more prepared.
Follow Data Protection Regulations
Adhering to the Nigeria Data Protection Regulation (NDPR) is not only a prevention of legal issues but also a testament to keeping up the responsibility towards customer data. To maintain adherence, it is key to perform regular compliance audits and have clear guidelines on how to handle data from employees. Accountability around data protection culture in the organization promotes a culture of prioritizing security in the whole organization. Automated compliance tools can eliminate human error and help streamline regulatory processes, and working with a team of legal experts can ensure that businesses are up to date with changing laws and standards.
The Role of Government in Ensure Internet Security
Strengthening Laws
Penalties for hackers should be stiffer in Nigeria’s cybercrime laws to discourage them and discourage the carrying out of the act. The punishment can range from harsher prison sentences to fines for those who are guilty of a cybercrime. Strong laws not only deter criminals, but they are a stronger framework for how to prosecute criminals. The government must also assist law enforcement agencies with advanced training, advanced tools and funding to tackle cybercrime effectively. To be able to react swiftly and provide more complete coverage of cybercrimes, it makes sense to create cybercrime units in key areas nationwide.
Public awareness campaigns
To reduce risks for individuals and businesses, the public has to be educated about cybersecurity. The social media, television, radio and community workshops can be used by awareness campaigns to enlighten people of all age groups and regions. Instead, if this is the case, these campaigns should focus on what are the common threats out there, which are phishing and online scams, and teach the users how to be safe online, how to recognize a suspicious email, how to avoid unsafe websites, how to protect their accounts. Through public campaigns, the government can increase the number of people who are aware of standard cyber security best practices and more importantly be willing to report suspicious ones.
Private Sector Partnerships
Government and businesses need to work together to fight against cybercrime. Sharing knowledge, tools and resources is a way to facilitate partnerships within separate sectors to work together on threat intelligence, cybersecurity, and any related initiatives. For instance, businesses deliver insights to emerging threats whereas the government delivers resources for early detection and prevention. Security training for employees can be conducted together through joint programs, such as cybersecurity campaigns, as well as in industries through the adoption of shared security platforms. Besides these partnerships enhance trust and build a unified stance on securing Nigeria’s digital environment.
Investment in Cybersecurity Infrastructure
With small businesses doing most of the work without the resources or even manpower to invest in protecting themselves, the government should step up and invest in cybersecurity infrastructure to help protect everyone on the web. It involves giving small and medium enterprises the needed training programs as well as affordable cybersecurity tools and access to secure internet services. However, when it comes to cybersecurity, government-funded initiatives such as cybersecurity grants or smaller businesses subsidies for cybersecurity software such as firewalls and antivirus software can help them get businesses started and secure. Government can allocate funds for the creation of public cybersecurity hubs or centres of excellence where training, tools and support can be offered to underserved communities to have a more resilient national cyber ecosystem.
Cybersecurity Skill-Building Programs
The current Nigerian cyber threats require addressing the shortage of the country’s skilled cybersecurity professionals. The government should fund cybersecurity initiatives through scholarships, building specialized courses in universities and establishing training centres. These programs can be for practical skills, certifications, and hands-on problem solving so you come out job-ready. These initiatives can further be enriched through partnerships with private companies, that can offer internships, mentorship opportunities as well as access to the best tools. If Nigeria invests in education and skill-building, it can create a rich and robust cybersecurity workforce scattered all over the country that can be tasked to protect the country’s digital infrastructure and businesses.
Sector-Specific Guidelines and Business Incentives
By forming public-private partnerships, cybersecurity can be improved through tailoring guidelines to often attacked industries including health and finance. Sensitive data is often handled in these industries, making them attractive targets for criminals while sector-specific standards can develop solutions specific to individual risks most effectively. The government can work with industry experts on a close basis such that the guidelines provided here are practical and actionable. In addition, rewarding businesses that adopt and keep up strong cybersecurity into more compliance will further set them even more compliant. It not only encourages proactive security but also demonstrates that the cost of advanced defences can be justified by businesses and leads to a safer digitalizing world in key sectors.
Looking Ahead: Building a Safer Future
As Nigerian businesses continue to embrace digitalization, staying safe from cyber threats will remain a top priority. By understanding the risks, adopting strong security measures, and working together, businesses can protect themselves and contribute to a thriving digital economy. Cybersecurity is a journey, not a one-time effort. With the right steps, Nigerian businesses can face the future with confidence, knowing they are prepared for whatever threats come their way. Proactive measures, combined with a culture of security, will ensure resilience in an increasingly digital world.
Adesola Wrote Via yemiadesola@gmail.com
