…As global cybercrime costs surpass $10tn
By Juliet Umeh

As Nigeria accelerates its transition toward a cashless economy and deeper financial inclusion, stakeholders have raised concerns that persistent cybersecurity gaps and declining trust could undermine the sustainability of progress in the digital payments ecosystem.

These concerns dominated discussions at the 2026 Payments Forum Nigeria (PAFON), held under the theme “Fair Digital Payments as a Catalyst for Deepening Financial Inclusion in Nigeria,” where experts warned that rapid fintech innovation must be matched with strong security frameworks to build public confidence.

Delivering the keynote address, Chief Visionary Officer of Digital Encode Limited, Prof. Peter Obadare, described cybersecurity and electronic fraud as the “big elephant in the room” confronting Nigeria’s digital payment landscape. He warned that the rush to deploy new financial solutions is often creating vulnerabilities that cybercriminals are quick to exploit.

According to him, weak access controls, poor input validation, and flawed system designs have become major entry points for attacks. He cited a Point-of-Sale deployment where a faulty application failed to request PIN authentication, exposing merchants to losses.

“These weaknesses create invisible vulnerabilities that remain dormant until exploited,” he said, noting that global cybercrime costs have now exceeded $10 trillion annually. “If cybercrime were a country, it would rank as the third-largest economy in the world.”

Reflecting on Nigeria’s payment evolution, Obadare acknowledged that regulatory interventions: such as the shift from magnetic stripe cards to EMV chip-and-PIN, helped reduce fraud, but warned that attackers have since evolved, now targeting applications and backend systems.

Also speaking, Managing Director of PalmPay, Chika Nwosu, highlighted the growing role of embedded finance in expanding access to financial services. He explained that financial tools are increasingly integrated into platforms already used daily by Nigerians, eliminating the need for multiple applications.

“Embedded finance is about meeting users where they are. Trust is everything, when transactions are reliable, adoption increases,” he said, adding that PalmPay’s extensive agent network remains critical in reaching underserved communities.

In his presentation, National President of the Association of Mobile Money and Bank Agents in Nigeria, Obioha Oti, described agency banking as the backbone of financial inclusion, particularly in rural and underserved areas. However, he identified key challenges, including liquidity constraints, network failures, fraud risks, and low profitability, as threats to the sector’s growth.

On regulation, Chairman of the Nigeria Information Technology Reporters Association, NITRA, and Co-convener of PAFON, Chike Onwuegbuchi, called for a balanced approach that supports innovation without stifling it.

While acknowledging the importance of regulation in ensuring security and stability, he cautioned against excessive controls that could hinder industry growth.

Stakeholders at the forum agreed that the future of Nigeria’s digital payments ecosystem will depend not just on innovation, but on the ability to build secure, resilient systems that inspire trust and drive inclusive adoption across all segments of society.