Nigerian banks are increasingly embracing artificial intelligence (AI) to improve customer service, strengthen fraud detection, and streamline operations.

However, the same technology-driven innovation could also expose the country’s financial system to unprecedented cyber risks, according to a recent warning from the International Monetary Fund (IMF).

The IMF cautioned that advanced AI tools are rapidly enhancing the capabilities of cybercriminals, making it easier and faster to identify and exploit vulnerabilities in banking systems, payment infrastructure, and digital platforms.

For Nigeria, where digital banking transactions have surged in recent years and financial institutions are becoming more interconnected, the implications could be significant.

The warning comes when Nigerian banks are investing heavily in digital transformation.

From AI-powered customer support systems to automated fraud monitoring tools and digital lending platforms, financial institutions are relying more than ever on technology to drive growth and improve efficiency.

Yet experts warn that this digital expansion is also widening the attack surface for cybercriminals.

The IMF noted that advanced AI models can dramatically reduce the time and expertise required to discover software vulnerabilities.

For Nigeria’s banking sector, which depends on common payment rails, cloud infrastructure, telecommunications networks, and shared service providers, a major cyber incident could quickly spread across the financial ecosystem.

Nigeria’s financial sector has undergone a remarkable digital revolution over the past decade.

Data from the Central Bank of Nigeria (CBN) show that electronic payments now account for trillions of naira in monthly transactions, driven by mobile banking, instant payments, fintech innovation, and the growing adoption of digital channels.

The success of platforms such as the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payments network has made banking more accessible and efficient.

However, it has also increased dependence on interconnected digital infrastructure. (TRIBUNE)

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