E-Financial
IMF says Rising Cyber Threats Pose Serious Concerns for Financial Stability
The International Monetary Fund (IMF) has declared that cyberattacks have more than doubled since the pandemic. In a blog released during the week, it pointed out that while companies have historically suffered relatively modest direct losses from cyberattacks, some have experienced a much heavier toll.
Specifically, US credit reporting agency Equifax, for example, paid more than $1 billion in penalties after a major data breach in 2017 that affected about 150 million consumers.
“As we show in a chapter of the April 2024 Global Financial Stability Report, the risk of extreme losses from cyber incidents is increasing. Such losses could potentially cause funding problems for companies and even jeopardise their solvency.
“The size of these extreme losses has more than quadrupled since 2017 to $2.5 billion. And indirect losses like reputational damage or security upgrades are substantially higher.
“The financial sector is uniquely exposed to cyber risk. Financial firms—given the large amounts of sensitive data and transactions they handle—are often targeted by criminals seeking to steal money or disrupt economic activity. Attacks on financial firms account for nearly one-fifth of the total, of which banks are the most exposed,” IMF said.
According to the Bretton Woods institution, incidents in the financial sector could threaten financial and economic stability if they erode confidence in the financial system, disrupt critical services, or cause spillovers to other institutions. “For example, a severe incident at a financial institution could undermine trust and, in extreme cases, lead to market selloffs or runs on banks.
Although no significant “cyber runs” have occurred thus far, our analysis suggests modest and somewhat persistent deposit outflows have occurred at smaller US banks after a cyberattack.
“Cyber incidents that disrupt critical services like payment networks could also severely affect economic activity. For example, a December attack at the Central Bank of Lesotho disrupted the national payment system, preventing transactions by domestic banks.
“Another consideration is that financial firms increasingly rely on third-party IT service providers, and may do so even more with the emerging role of artificial intelligence.
“Such external providers can improve operational resilience, but also expose the financial industry to systemwide shocks. For example, a 2023 ransomware attack on a cloud IT service provider caused simultaneous outages at 60 US credit unions,” it added.
The Fund said with the global financial system facing significant and growing cyber risks from increasing digitalization and geopolitical tensions, policies and governance frameworks at firms must keep pace.
The global lender added that because private incentives may be insufficient to address cyber risks—for example, firms may not fully account for the systemwide effects of incidents—public intervention may be necessary.
However, according to an IMF survey of central banks and supervisory authorities, cybersecurity policy frameworks, especially in emerging market and developing economies, often remain insufficient. For example, only about half of countries surveyed had a national, financial sector-focused cybersecurity strategy or dedicated cybersecurity regulations.
To strengthen resilience in the financial sector, authorities should develop an adequate national cybersecurity strategy accompanied by effective regulation and supervisory capacity that should encompass: Periodically assessing the cybersecurity landscape and identifying potential systemic risks from interconnectedness and concentrations, including from third-party service providers.
Encouraging cyber “maturity” among financial sector firms, including board-level access to cybersecurity expertise, as supported by the chapter’s analysis which suggests that better cyber-related governance may reduce cyber risk.
Improving cyber hygiene of firms—that is, their online security and system health (such as antimalware and multifactor authentication)—and training and awareness.
Prioritising data reporting and collection of cyber incidents, and sharing information among financial sector participants to enhance their collective preparedness.
As attacks often emanate from outside a financial firm’s home country and proceeds can be routed across borders, international cooperation is imperative to address cyber risk successfully.
It stressed that while cyber incidents will occur, the financial sector needed the capacity to deliver critical business services during these disruptions.
To this end, financial firms should develop, and test, response and recovery procedures and national authorities should have effective response protocols and crisis management frameworks in place.
It also hinted that IMF actively helped member countries strengthen their cybersecurity frameworks through policy advice, for example as part of the Financial Sector Assessment Programme, and through capacity-building activities.
Mr. Samuel Agbeluyi, the President of the Chartered Institute of Taxation of Nigeria, has charged incoming tax professionals to see their roles as critical to shaping Nigeria’s fiscal policies and building a more efficient tax system.
Agbeluyi gave the charge on Tuesday at the opening of the April 2025 Pre-Induction Orientation Programme held in Abuja.
While addressing participants, the CITN President said the orientation marked not just a personal achievement for inductees but the beginning of a greater national responsibility.
According to him, “Ultimately, it is expected that at the end of this programme and the induction thereafter, the number of tax professionals in the roll call of the CITN and indeed Nigeria would grow.
“Most importantly, more professionals would be added to the struggle of building an efficient and effective tax system in Nigeria, whilst influencing government fiscal policies and adding immense value to various stakeholders.”
Agbeluyi stated that the institute’s charter empowers it to determine the standard of knowledge and skills required to become a professional in the field, adding that the training was a deliberate step towards producing competent tax administrators capable of delivering value in the Nigerian economy.
He also noted that facilitators had been carefully selected from among experienced tax professionals and administrators to guide inductees using practical scenarios.
In her remarks, the Deputy Director of the CITN Tax Academy, Mrs Yetunde Suleiman, said the training was designed to expose participants to key developments in national and international tax administration, as well as emerging issues in the digital economy.
She noted that taxation remained central to Nigeria’s economic development and urged the inductees to take their training seriously in light of growing challenges in the country’s tax system, such as evasion, ambiguity of laws and high compliance costs.
Suleiman said, “There is a continuous need to produce, train and unleash qualified tax professionals to tackle these hydra-headed tax challenges.”
She urged participants to approach the sessions with enthusiasm, noting that the knowledge acquired would prepare them to become ambassadors of the institute and sound professionals equipped to drive reform in the tax space.
FCMB Capital Markets Ltd. successfully led the issuance of GLNG Funding SPV Plc’s ₦11.85 billion 10-Year Series 2 Senior Guaranteed Fixed Rate Infrastructure Bond, which closed in February. This milestone underscores investor confidence in Nigeria’s clean energy transition.
The bond, issued by GLNG Funding SPV Plc and sponsored by Green Liquified Natural Gas (GLNG) as part of its capital-raising plans, is a key step in financing the construction of a mini-LNG plant with a liquefaction capacity of 200,000 standard cubic meters of gas per day.
The facility will help bridge Nigeria’s power supply gap and offer industries a cleaner, cost-effective alternative to diesel.
The issuance was backed by InfraCredit, an AAA-rated infrastructure credit guarantee firm, and is expected to generate over 500 direct and 2,000 indirect jobs, supporting Nigeria’s sustainable economic growth.
“FCMB Capital Markets remains committed to financing projects that drive clean energy adoption and long-term economic impact,” said Ikechukwu Omeruah, Managing Director, FCMB Capital Markets Limited.
“We appreciate the trust placed in us by GLNG and the invaluable role played by InfraCredit and investors in enabling the successful conclusion of this transaction.”
As gas adoption accelerates in Nigeria, a 2022 Clarke Energy report estimates that manufacturers could save up to 30% by switching to gas from the grid and as much as 80% compared to diesel.
FCMB Capital Markets, a part of FCMB Group, has been instrumental in raising over ₦3 trillion in debt and equity capital for leading corporate organizations in Nigeria over the past five years, reinforcing its position as a key player in the country’s capital markets.
Nine leading Nigerian banks collectively generated N14.26 trillion in interest income in 2024, reflecting a 119.55% increase from N6.49 trillion in 2023.
This surge is attributed to the Central Bank of Nigeria’s Monetary Policy Committee raising benchmark interest rates to combat inflation, which reached 34.80% by the end of the year.
Among the banks, Zenith Bank recorded the highest actual income increase, while First Holdco led in percentage growth. Access Holdings, UBA, GTCO, Stanbic IBTC, FCMB Group, Fidelity Bank, and Wema Bank also reported significant gains.
However, a portion of this income was derived from non-performing loans, raising concerns about the sustainability of these earnings.
In contrast, the manufacturing sector faced operational costs of N2.5 trillion, with high interest and energy expenses straining growth. Industry leaders have called for a halt to further rate hikes, warning of potential risks to the real sector’s recovery.
This financial dynamic underscores the contrasting fortunes of Nigeria’s banking and manufacturing sectors. What are your thoughts on these developments?
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