Cybercrime surge hits Nigeria’s digital economy as losses hit N12bn annually

…Country records 4,000 cyberattacks weekly — NDPC
…Innovation without security deepening exposure across infrastructure-Obadare
By Juliet Umeh

Nigeria’s digital economy is growing fast, but cyber attacks are also increasing, and security is not improving quickly enough to match it.

Figures presented by the Nigeria Data Protection Commission at the IoT West Africa Conference 2026 indicate that the country now records over 4,000 cyberattacks weekly, with estimated financial losses of about N12 billion in 2024.

The report also revealed that nearly 90 per cent of Nigeria’s data is hosted outside Africa, leading to an estimated $850 million annual spend on foreign cloud infrastructure,raising concerns around data sovereignty, security exposure, and economic leakage.

The National Commissioner/Chief Executive Officer of NDPC, Dr. Vincent Olatunji, said Nigeria’s digital economy is expanding in size and relevance but remains exposed due to infrastructure and security gaps.

He noted that while the global digital economy is projected to reach about $28 trillion by 2026, Nigeria’s digital economy, estimated at $18.3 billion and contributing nearly 20 per cent to GDP, is increasingly driven by massive data generation from mobile connectivity, artificial intelligence, and IoT systems.

“Data is no longer just an asset; it has become critical infrastructure,” Olatunji said, warning that regulatory and physical infrastructure must evolve to match the pace of digital growth.

Rising attacks and expanding exposure

Nigeria is now regarded as one of Africa’s most targeted cyber environments, accounting for about 45 per cent of reported cybercrime incidents on the continent.

Attack patterns include phishing, ransomware, business email compromise, distributed denial-of-service, DDoS, identity theft, and other forms of digital fraud targeting financial institutions, telecom platforms, and public systems.

“Cyberattacks are now occurring every 39 seconds globally. No economy that depends on digital infrastructure can afford to ignore this reality,” Olatunji said.

90% of data hosted abroad deepens sovereignty risks

A major structural challenge identified is Nigeria’s heavy reliance on foreign data infrastructure.
With about 90 per cent of national data hosted outside the country, Nigeria spends an estimated $850 million annually on offshore cloud services, creating risks linked to regulatory control, latency, and national security exposure.

“Data sovereignty is not optional. It determines who controls national information, who profits from it, and how secure citizens are in the digital space,” Olatunji said.

Infrastructure gap and compliance pressure

Nigeria currently operates about 26 data centres with a combined capacity of 136.7 megawatts, projected to rise to 279.4 megawatts by 2030.

Key operators include Africa Data Centres, Open Access Data Centres, Rack Centre, MDXi (Equinix), MTN Nxtra, and 21st Century Technologies.

However, regulators say current capacity remains insufficient for the scale of emerging technologies such as AI, cloud computing, and IoT.

Under the Nigeria Data Protection Act (NDPA) 2023 and GAID 2025 framework, the Nigeria Data Protection Commission has introduced stricter compliance obligations, including breach reporting within 72 hours, ISO certification requirements, and mandatory audits for data controllers and processors.

“Innovation without security deepening exposure” — Obadare

Cybersecurity expert Dr. Peter Obadare warned that Nigeria’s rapid digital innovation is widening system vulnerabilities, particularly within payment infrastructure. “When we talk about regulation, innovators think it is too much. But in cybersecurity, regulation is not excessive, it is necessary,” he said.

He noted that many systems remain exposed due to weak design and poor security implementation, adding that attackers increasingly exploit structural flaws rather than advanced techniques.

Industry analysts say cyber threats are evolving from basic fraud to more sophisticated attacks, with weak system controls remaining a key enabler.

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