SEC emphasizes importance of cyber risk mitigation in the capital market.

Recognizing the threat that cybercrime poses to financial market confidence, integrity, and efficiency, the Securities and Exchange Commission’s Director General, Mr. Lamido Yuguda, has emphasized the importance of a strong risk-mitigation strategy.

Yuguda also stated during the Central Securities Clearing System Cyber Securities conference in Abuja that the importance of cybersecurity to the financial sector must be emphasized because it is where people’s hard-earned money and other financial instruments are saved and invested.

“In the Nigerian capital market, we clearly take cybersecurity issues very seriously because of the increasing volume of data and information that are stored electronically, coupled with the increased adoption of digitization and digitalization options in processing market transactions on a daily basis,” he said.

“Today, more of our market activities than ever before are conducted through the use of technology.” While this has increased efficiency significantly, it has also exposed our market to a new set of risks, including cybersecurity risk, which we must recognize and manage.”

He noted that the Covid-19 pandemic, which required the activation of business continuity plans through remote operations, has increased the rate at which stakeholders embrace technology and emphasizes the critical need to protect systems from existing and potential cyberspace threats.

According to Yuguda, cyber-attacks on financial institutions are frequently carried out with the goal of gaining access to sensitive and confidential information for illicit financial gain. Because of the increased interconnectedness of financial institutions, a cyber-attack from one location or entity can have an impact on the entire system, jeopardizing the functions and safety of several sectors of the economy.

In this regard, he stated that the Securities and Exchange Commission (SEC) appreciates the Federal Government of Nigeria’s efforts in developing the National Cybersecurity Policy and Strategy 2021 through the Office of the National Security Adviser.