FIVE BANKS BUDGET N222BN FOR CYBERSECURITY
Summary:
- Purpose of Investment:
- Five financial institutions are allocating $1.20 billion (approximately N222 billion) from capital raised to invest in technology and enhance cybersecurity infrastructure.
- This is in response to the new capital requirements set by the Central Bank of Nigeria (CBN), which requires banks to raise their capital base.
- Capital Requirements:
- The CBN has directed commercial banks with international authorization to increase their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion.
- Financial institutions have two years to meet these targets, with options to raise additional capital, engage in mergers and acquisitions, or upgrade or downgrade licenses.
- Bank Allocations:
- Guaranty Trust Holding Company (GTCO):
- Budgeted N98.50 billion for technology infrastructure upgrades.
- N15 billion allocated to information security and fraud prevention.
- Access Holdings:
- Plans to invest N68.62 billion in IT infrastructure, with N27.48 billion for cybersecurity.
- Zenith Bank Plc:
- Allocating N19.85 billion for IT investments, including N2.98 billion for cybersecurity architecture/software.
- Fidelity Bank:
- Plans to spend N19.01 billion on IT infrastructure, with N9.03 billion dedicated to cybersecurity.
- FCMB Group:
- Budgeting N16.22 billion for technology, with N5.23 billion for cybersecurity.
- Cybersecurity Concerns:
- The surge in cybersecurity attacks on banks has led to financial losses and legal actions.
- GTBank recently confirmed an attempted hacking incident, which was unsuccessful, emphasizing the need for robust cybersecurity measures.
- Global Context:
- The International Monetary Fund (IMF) has reported increasing risks of extreme losses from cyber incidents, potentially jeopardizing companies' solvency.
Summary:
- Purpose of Investment:
- Five financial institutions are allocating $1.20 billion (approximately N222 billion) from capital raised to invest in technology and enhance cybersecurity infrastructure.
- This is in response to the new capital requirements set by the Central Bank of Nigeria (CBN), which requires banks to raise their capital base.
- Capital Requirements:
- The CBN has directed commercial banks with international authorization to increase their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion.
- Financial institutions have two years to meet these targets, with options to raise additional capital, engage in mergers and acquisitions, or upgrade or downgrade licenses.
- Bank Allocations:
- Guaranty Trust Holding Company (GTCO):
- Budgeted N98.50 billion for technology infrastructure upgrades.
- N15 billion allocated to information security and fraud prevention.
- Access Holdings:
- Plans to invest N68.62 billion in IT infrastructure, with N27.48 billion for cybersecurity.
- Zenith Bank Plc:
- Allocating N19.85 billion for IT investments, including N2.98 billion for cybersecurity architecture/software.
- Fidelity Bank:
- Plans to spend N19.01 billion on IT infrastructure, with N9.03 billion dedicated to cybersecurity.
- FCMB Group:
- Budgeting N16.22 billion for technology, with N5.23 billion for cybersecurity.
- Cybersecurity Concerns:
- The surge in cybersecurity attacks on banks has led to financial losses and legal actions.
- GTBank recently confirmed an attempted hacking incident, which was unsuccessful, emphasizing the need for robust cybersecurity measures.
- Global Context:
- The International Monetary Fund (IMF) has reported increasing risks of extreme losses from cyber incidents, potentially jeopardizing companies' solvency.