A United Kingdom-based financial security expert, Dr. Kingsley Aguoru, has called on the Federal Government to establish a financial services authority to tackle the growing menace of financial and cyber crimes in Nigeria.
This appeal comes on the heels of the recent arrest of 130 suspects, including 113 foreign nationals, for high-level cybercrimes.
According to Aguoru, Nigeria can’t continue to grapple with financial and cyber crimes if the right measures are put in place. He proposed that the financial services authority would operate similarly to the UK’s Financial Conduct Authority, managing financial infrastructure, overseeing payment systems, and collaborating with the Central Bank of Nigeria and Economic and Financial Crimes Commission.
“The financial services authority, if established, will operate as a specialised regulatory body, similar to the FCA in the UK, that would manage the financial infrastructure, oversee payment systems, and work in tandem with the CBN and EFCC,” Aguoru explained.
Aguoru’s motivation stems from his personal experience with Card-Not-Present fraud in 2005. He highlighted the vulnerability of online transactions, stating, “When you use your PIN at a POS terminal, there are secure layers in place, both online and offline, making the transaction very difficult for fraudsters to compromise. However, when a PIN is used online, there’s minimal control over security.”
In addition to establishing a regulatory body, Aguoru criticized the commercialization of Nigeria’s National Identification Card, which features MasterCard’s logo. He finds this partnership problematic and potentially vulnerable to exploitation.
Nigeria currently has several financial regulatory bodies, including the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Stock Exchange Commission, and Financial Reporting Council of Nigeria ¹. These bodies aim to maintain the integrity and stability of the financial system.
*Existing Financial Regulatory Bodies in Nigeria:*
– _Central Bank of Nigeria (CBN)_: Oversees banks and financial institutions
– _Securities and Exchange Commission (SEC)_: Regulates the capital market
– _Nigerian Stock Exchange Commission (NSE)_: Promotes transparency and trust in the capital market
– _Financial Reporting Council of Nigeria (FRCN)_: Ensures adherence to accounting and financial standards
By establishing a specialized regulatory body, Nigeria can strengthen its fight against financial and cyber crimes, protecting its citizens and maintaining economic stability.
