Nigeria’s fintech sector has become the pride of Africa, attracting billions in investment and revolutionising payments, lending, and wealth management. Yet with rapid growth comes heightened risk. Cyberattacks, fraud, and data breaches threaten to undermine public trust in digital finance.
Finance and Strategy Expert, Paschal Ezeliora, who has published research on encryption in fintech applications, argued that Nigeria must prioritise data security as much as innovation. “Encryption is no longer optional. It is the foundation of trust in digital transactions,” he says.
While many Nigerian fintechs have embraced mobile-first solutions, their security frameworks often lag behind global standards. End-to-end encryption, multi-factor authentication, and continuous audit trails are essential to protect sensitive financial data. Without them, the sector risks reputational damage and regulatory backlash.
Auditing also plays a critical role. “Encryption protects data in transit and storage, but audits ensure compliance and accountability,” Ezeliora explains. Independent audits of fintech platforms can identify vulnerabilities, enforce transparency, and reassure investors and regulators alike.
The stakes are high. Nigeria loses billions annually to cybercrime, much of it targeting financial institutions. As fintech adoption accelerates, so too will the sophistication of attacks.
Ezeliora believes collaboration between regulators, fintechs, and cybersecurity experts is essential. “Encryption is no longer optional. It is the foundation of trust in digital transactions,” he noted.
He also calls for stronger consumer education. “Users must understand the importance of secure passwords, device protection, and recognising phishing attempts. Security is not just a corporate responsibility; it is a shared one.”
If Nigeria can strengthen its encryption and audit frameworks, it will not only safeguard its fintech boom but also position itself as a global leader in secure digital finance. For a country with ambitions to dominate Africa’s digital economy, this is a frontier it cannot afford to ignore.
