Market Trends of Nigeria Cybersecurity Industry
The Solutions Segment is Analyzed to Hold a Significant Market Share
- Cybersecurity solutions, notably data security, application security, and cloud security solutions, are analyzed to drive the growth of the Nigerian cybersecurity market over the forecast period. The country's increasing digital transformation, rising cloud adoption, and the integration of advanced technologies in its businesses are broadening the attack surface, underscoring the imperative for robust cybersecurity solutions.
- Furthermore, the growing number of data breach incidents across various sectors in the country is necessitating the demand for cybersecurity solutions to enhance the cybersecurity posture of Nigerian businesses. Implementing data compliance mechanisms by adopting data security solutions is crucial to enhancing cybersecurity resilience.
- A study by cybersecurity firm Surfshark revealed that data breaches in Nigeria surged by 64% in the first quarter of 2023. Surfshark's analysis positioned Nigeria as the 32nd most breached country globally from January to March 2023, emphasizing the critical need for bolstered cybersecurity measures in the country. The report highlighted that Nigeria witnessed 82,000 compromised accounts in Q1 2023, marking a substantial 46% rise from the preceding quarter (Q4 2022).
- In January 2024, the Nigeria Data Protection Commission (NDPC) revealed that it was investigating 17 priority data breach cases spanning sectors such as finance, technology, education, government, logistics, and gaming. These investigations demonstrate Nigeria’s commitment to data protection and privacy, bolstered by a strong legislative framework and strategic initiatives.
- The number of data protection investigations by the Nigeria Data Protection Commission in the country increased from 17 in 2021 to 177 in 2023. Thus, this further necessitates the demand for strong data security measures in the sectors across the country.
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The BFSI Sector is Analyzed to Drive the Market's Growth
- The BFSI sector is analyzed to drive the demand for cybersecurity solutions and services in the Nigerian cybersecurity market. With the growing technological penetration and digital channels, such as Internet banking and mobile banking, online banking has become the preferred choice for banking services by customers. Hence, there is a significant need for banks to leverage advanced authentication and access control processes.
- The Nigerian banking sector has witnessed a profound transformation in recent years, propelled by swift advancements in digital technology. With a strategy to secure their IT processes and systems, secure customer critical data, and comply with government regulations, public and private banking institutes in the country are focusing on implementing cybersecurity solutions and services to prevent cyber attacks.
- Moreover, Nigerian banks are increasingly prioritizing the protection of sensitive customer data and fortifying their defenses against cyber threats. This heightened focus is underscored by the Nigeria Data Protection Commission (NDPC), which is intensifying efforts to curb data breaches within the banking sector. Notably, in 2023, the Commission received 1,674 audit filings, with 745 specifically targeting the financial services segment.
- Moreover, with the rising adoption of mobile and internet banking in the nation's financial services sector, propelled by increasing internet and smartphone usage, the potential for cyber threats is expanding. Consequently, there is a projected surge in demand for cybersecurity solutions and services within the country's BFSI sector in the coming years.
