Nigeria’s fast-growing digital payments ecosystem is increasingly vulnerable to cyber threats, with cybersecurity expert and Chief Visionary Officer of Digital Encode, Prof. Adewale Peter Obadare, warning innovators and financial technology operators that neglecting cybersecurity in pursuit of rapid market expansion could undermine financial inclusion and public trust.
Presenting a keynote address at the third edition of the Payments Forum Nigeria (PAFON 3.0) held last weekend, Obadare stressed that cybersecurity regulation should not be viewed as an obstacle to innovation but as a critical enabler of sustainable digital growth, particularly in Nigeria’s payment infrastructure where electronic fraud and cybercrime remain major threats.
According to him, many fintech operators mistakenly prioritize infrastructure deployment while postponing security implementation, a strategy he described as fundamentally flawed.
“Innovators want to build infrastructure first and secure it later, but it doesn’t work like that,” he said, insisting that cybersecurity must be integrated from the outset.
Obadare, whose keynote was themed “Focus on Cybersecurity Infrastructure For Fair Payments,” noted that Nigeria’s cyberspace has witnessed heightened attacks in recent weeks, describing the nation’s payment systems as a prime target because “this is where the money is,” and argued that many of these attacks are not highly sophisticated but are often the result of organizations failing to implement basic cybersecurity measures.
“Most of the attacks we are seeing are because the basic stuff is not being done,” he said. “A lot of payment infrastructures have weak immunity on the internet, and when immunity is low, opportunistic attacks become inevitable.”
Drawing comparisons between physical and digital security, the cybersecurity specialist likened unsecured payment systems to leaving one’s home or car unlocked in a public environment, emphasising that cyberspace is inherently exposed, requiring constant vigilance and robust safeguards.
Obadare, the first professor of practice in Cybersecurity in Nigeria, identified cybersecurity threats and electronic fraud as the “big elephant in the room” for Nigeria’s financial ecosystem, warning that without trust, digital financial inclusion efforts could stall. “Payment is sensitive because it involves people’s money. Once trust is lost, adoption suffers,” he said.
He also highlighted how regulatory interventions have historically strengthened Nigeria’s payment ecosystem, citing the migration from magnetic stripe cards to chip-and-PIN technology as a successful example.
While explaining that such regulations significantly reduced card cloning and fraud, proving that effective cybersecurity policies enhance rather than hinder innovation, Obadare stated: “Regulation helped solve a major fraud problem. That’s what good cybersecurity regulation does—it protects innovation from collapse.”
The cybersecurity expert warned, however, that cybercriminals are continuously evolving, leveraging artificial intelligence and new technologies to exploit vulnerabilities faster and at greater scale, noting that AI has effectively placed more advanced cyberattack tools in the hands of criminals, increasing the urgency for organizations to proactively strengthen defences.
“AI is now fuelling cybercrime at an unprecedented level,” Obadare cautioned. “Cybercriminals are innovating too.”
The professor further criticized organizations that invest heavily in product development but resist spending on security architecture, describing cybersecurity as an investment rather than a cost centre. He argued that reactive crisis spending after security breaches is far more expensive than proactive protection.
“Cybersecurity is not a cost; it is an enabler,” he said. “If you fail to secure your systems, you will pay for it eventually, often at a much higher price.”
Obadare called for a strategic, architectural, and delivery-focused approach to digital payment systems, urging innovators to consistently ask whether they are “doing the right thing, doing it the right way, and getting it done well.”
He noted that building digital trust requires sustained investment in people, processes, and technology, emphasizing that trust-driven systems naturally attract adoption more effectively than aggressive marketing.
“Digital trust is hard work. It is not a one-time achievement but a continuous journey,” he said. “When trust is strong, financial inclusion becomes a pull system, not a push system.”
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