Cyber threats strain Nigeria’s digital economy as annual losses reach N12bn

Nigeria’s digital economy is expanding rapidly, but the rise in cybercrime is outpacing improvements in security infrastructure.

Data shared by the Nigeria Data Protection Commission at the IoT West Africa Conference 2026 shows that the country now experiences more than 4,000 cyberattacks each week, with estimated losses hitting about N12 billion in 2024.

The findings also highlight that close to 90 per cent of Nigeria’s data is stored outside Africa, resulting in an annual expenditure of roughly $850 million on foreign cloud services. This trend raises concerns about data control, security vulnerabilities, and capital flight.

The Commission’s National Commissioner and Chief Executive Officer, Vincent Olatunji, noted that although the digital economy is growing in scale and importance, it remains vulnerable due to gaps in infrastructure and cybersecurity readiness.

He explained that while the global digital economy could hit $28 trillion by 2026, Nigeria’s own sector—valued at about $18.3 billion and contributing nearly 20 per cent to GDP—is being powered by rising data generation from mobile usage, artificial intelligence, and Internet of Things technologies.

“Data has moved beyond being just an asset; it is now critical infrastructure,” he said, stressing the need for both regulatory and physical systems to keep pace with digital expansion.

Rising threats and wider exposure
Nigeria has emerged as one of the most targeted countries for cybercrime in Africa, accounting for roughly 45 per cent of reported incidents across the continent.

Common attack methods include phishing, ransomware, business email compromise, distributed denial-of-service (DDoS) attacks, identity theft, and other digital scams aimed at banks, telecom firms, and government platforms.

Olatunji warned that cyberattacks now occur globally every 39 seconds, adding that no digitally driven economy can afford to overlook the growing threat.

Dependence on foreign data infrastructure

A key concern is Nigeria’s reliance on offshore data hosting. With nearly 90 per cent of its data stored abroad, the country continues to spend heavily on foreign cloud infrastructure, exposing it to regulatory limitations, slower data access, and national security risks.

“Data sovereignty is crucial. It defines control over national data, economic benefits, and the level of protection available to citizens,” he said.

Capacity gaps and stricter compliance

Nigeria currently operates about 26 data centres with a combined capacity of 136.7 megawatts, expected to increase to 279.4 megawatts by 2030. Major players include Africa Data Centres, Open Access Data Centres, Rack Centre, MDXi, MTN Nxtra, and 21st Century Technologies.

Despite this growth, regulators say existing capacity is still inadequate to support emerging technologies like AI, cloud computing, and IoT at scale.

Under the Nigeria Data Protection Act 2023 and the GAID 2025 framework, the NDPC has tightened compliance rules, including mandatory breach reporting within 72 hours, ISO certification standards, and regular audits for organisations handling data.

Cybersecurity specialist Peter Obadare cautioned that Nigeria’s rapid digital advancement is increasing system vulnerabilities, particularly in payment platforms.

He argued that while some innovators view regulations as excessive, they are essential for safeguarding digital systems. He also pointed out that many platforms remain at risk due to poor system design and weak security implementation, with attackers increasingly exploiting structural weaknesses rather than relying on complex methods.

Industry experts say cyber threats are shifting from simple fraud schemes to more advanced operations, with inadequate system controls continuing to fuel the problem.