In 2025, cybersecurity is no longer just a line item for the IT department — it’s a central business issue that demands attention at the highest levels of leadership. As digital transformation accelerates, and with AI rapidly changing the threat landscape, cybersecurity has become one of the most pressing strategic risks facing modern organizations.

Yet, in boardrooms across Nigeria and beyond, cybersecurity remains underrepresented. In fact, fewer than 20% of global corporate boards have a cybersecurity expert, according to a 2023 report by Gartner. Many board members still view cyber threats as technical issues — the domain of firewalls, antivirus software, and IT personnel — rather than what they truly are: existential threats to business continuity, brand trust, and shareholder value.

 

The Nigerian Cybercrime Crisis

The scale of financial losses due to cyberattacks in Nigeria is alarming. According to the Financial Institutions Training Centre (FITC), Nigerian banks lost a staggering ₦53.4 billion to cybercriminal activities in just the first nine months of 2024 — a 468% increase from ₦9.4 billion during the same period in 2023.

Even more shocking, Q2 of 2024 alone accounted for ₦42.8 billion in losses, a meteoric rise from ₦468.4 million recorded in Q1. These figures underscore the growing sophistication and success of cybercriminal operations targeting financial institutions.

And the impact goes beyond banking.

According to Nigeria’s Federal Government, the country loses an estimated $250 billion annually to cybercrime — affecting sectors ranging from oil & gas and telecoms to healthcare, logistics, and retail. This is not just a tech issue. This is an economic crisis.

Read More: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

The Problem You Know: Data Breaches and Compliance Chaos

Executives are already familiar with the usual suspects:

• Data breaches that compromise customer trust.
• Compliance pressures from local and global regulations like NDPA, and GDPR.
• Ransomware attacks that cripple operations and demand millions in cryptocurrency.
• Third-party risks from vendors with poor security practices.

What may not be as obvious is just how much these risks have evolved — and how unprepared many companies still are.

 

The Problems You Might Not Know (Yet)

1. AI-Powered Threats Are Redefining Risk

Artificial intelligence is a double-edged sword. While organizations embrace AI for efficiency, cybercriminals are using the same tools to launch hyper-personalized phishing attacks, deepfake social engineering, and automated vulnerability scanning. The attack surface has expanded exponentially: cloud environments, APIs, third-party vendors, IoT devices, and remote teams all present new vulnerabilities.

• In 2023, over 60% of successful phishing attacks involved AI-generated content, making them nearly indistinguishable from genuine communications.
• Deepfake voice scams cost one UK company $243,000 when an executive was tricked into wiring funds to a fraudster impersonating the CEO.

2. Cyberattacks Are Increasing in Frequency and Cost

According to IBM’s 2023 Cost of a Data Breach Report:

• The average cost of a data breach globally has risen to $4.45 million, a 15% increase over three years.
• In Nigeria and other developing markets, while average losses per incident are lower, the recovery time and reputational damage are often worse due to resource gaps.

3. Cyber Insurance Is No Longer a Safety Net

The surge in cyber incidents has made insurers more selective, with stricter conditions and higher premiums. Policies now require demonstrable cyber hygiene — meaning without proper governance, your claim could be denied.

4. Board Accountability Is Increasing

Regulators are no longer tolerating ignorance. In the U.S., the SEC has introduced rules mandating cyber risk disclosures. Locally, Nigerian regulators like the CBN, SEC, and NCC have issued industry-specific cybersecurity frameworks, and enforcement is intensifying.

Boards and C-suites can no longer claim plausible deniability.

Read More: Are You Losing Millions to Software You Don’t Even Own? Here’s What to Do Instead

Why You Must Lead the Charge — Not Delegate It

Cybersecurity is now a strategic risk. It requires governance, investment, and visibility at the top level. And most importantly, it requires proactiveness, not reactivity.

Waiting for a breach to happen before taking cybersecurity seriously is like insuring a burning building.

As a top executive, your role includes:

• Championing a cyber-aware culture from the top down.
• Mandating regular cyber risk assessments and scenario planning.
• Integrating cybersecurity into enterprise risk management (ERM) frameworks.
• Ensuring cybersecurity metrics and KPIs are part of board reporting.
• Investing in zero-trust architecture, AI threat detection, and third-party risk oversight.

 

The Way Forward: From Awareness to Agility

To stay ahead, boards and executive teams must:

Elevate cybersecurity to board-level oversight

Establish a board subcommittee or appoint a cybersecurity liaison to ensure visibility.

Adopt a cybersecurity maturity model

Use internationally recognized frameworks like NIST, CIS Controls, or ISO 27001 to assess gaps and improve posture.

Invest in people and capabilities

Cyber resilience is not just about tech — it’s about people. Train employees, hire CISOs, and build incident response plans that are tested regularly.

Anticipate tomorrow’s threats

With generative AI and quantum computing on the horizon, boards must work with their tech leaders to anticipate and prepare for next-generation risks.

Partner with trusted advisors

Engage with professional services firms like Stransact, with global capabilities and local insight, to assess, design, and implement enterprise-wide cyber strategies.

Read More: AI Adoption: Redefining Efficiency and Innovation in Your Business

Cybersecurity is Everyone’s Business — But It Starts with You

The cyber risk landscape is expanding faster than many boards can keep up with. From AI-driven scams to geopolitical cyber warfare, the threats are diverse, sophisticated, and ever-evolving.

You wouldn’t leave financial controls to chance. You wouldn’t ignore operational risk. So why treat cybersecurity as anything less than a core strategic concern?

Proactive leadership from the top is the only way to build cyber resilience, maintain stakeholder trust, and secure the future of your enterprise.

Cybersecurity is no longer an IT issue. It’s a boardroom issue. And it’s your move

 

Let’s Talk Strategy

If you’re ready to assess your current cybersecurity maturity or elevate your board’s awareness, Stransact can help. Reach out to us at [email protected] to schedule a board-level cyber risk consultation.

For many large enterprises, off-the-shelf software seems like the most convenient choice—fast to deploy, pre-packaged features, and a vendor taking care of updates.

But here’s the reality: you’re paying a premium for something you don’t own.

Every year, businesses spend millions on recurring licensing fees, mandatory upgrades, and hidden costs associated with software that wasn’t designed for them. Even worse, your business-critical operations are dependent on third-party platforms—which can change policies, raise prices, or even shut down, leaving you stranded.

So the real question is: how much is your software really costing you? And more importantly, what can you do about it?

The Hidden Cost of Off-the-Shelf Software

You’re Paying for Features You Don’t Need

Most enterprise software solutions bundle features into expensive plans—forcing you to pay for tools that your business may never use.

• Need custom reporting? That’s an extra fee.
• Need specific compliance settings? Upgrade to a premium plan.
• Need more user licenses? Your costs just doubled.

Over time, these unnecessary expenses drain your budget without adding real value to your business.

Example: Schneider Electric consolidated multiple third-party software tools into a custom-built platform, saving millions in unnecessary licensing fees.

You’re Locked into Expensive Subscription Fees Forever

At first, subscription software seems affordable—until you realize you’re renting a tool you’ll never own.

With each passing year, the cost keeps rising, and since the software isn’t yours, you have no control over pricing, policy changes, or service shutdowns.

Example: HSBC, operating across multiple continents, built its own custom risk management platform instead of relying on third-party software—cutting millions in recurring subscription costs.

💡 What’s the alternative? A custom software solution means you invest once, own the platform outright, and eliminate unpredictable annual fees.

You Have No Control Over Compliance & Security Risks

For multinational enterprises, compliance is non-negotiable. Payroll regulations, data protection laws, and industry compliance constantly evolve, but third-party software providers are slow to adapt.

• Data stored externally means you’re at the mercy of their security standards.
• Regulatory non-compliance can lead to penalties if the software doesn’t meet local laws.
• Vendor lock-in prevents flexibility if you need to adjust your software to new legal requirements.

Example: Maersk, the world’s largest shipping company, suffered a massive cyberattack that crippled its supply chain. The lesson? Enterprises with full control over their systems recover faster and protect their data more effectively.

💡 What’s the alternative? Custom software ensures full compliance, enhanced security, and total data ownership.

You’re Stuck with Software That Won’t Scale With You

As enterprises grow, so do their operational complexities. But off-the-shelf software isn’t designed for long-term scalability.

• Want to expand functionality? You’ll need third-party add-ons.
• Need custom integrations? Good luck making them work seamlessly.
• Trying to adjust workflows? You’ll have to work around software limitations.

Example: Airbus, a global aerospace leader, abandoned generic ERP solutions in favor of a custom-built enterprise system that scaled seamlessly across its manufacturing and supply chain operations.

💡 What’s the alternative? Custom software is built to grow with your business, not against it.

Case Study: How a Multinational Saved Millions with Custom Payroll Software

A leading manufacturing multinational in Nigeria was spending millions annually on third-party payroll software, facing:

• High licensing fees
• Security risks from external data storage
• Compliance gaps with evolving Nigerian tax laws
• Inflexible payroll structures

By switching to a custom-built payroll solution, they eliminated recurring costs, enhanced security, ensured full compliance, and optimized efficiency.

The result? Millions saved annually and a payroll system built for their needs.

🔗 See the full transformation— CLICK HERE

What Should Enterprises Do Instead? Take Back Control.

The real cost of software isn’t just in the licensing fees—it’s in the lack of control, security, and scalability.

Here’s what enterprises should consider:

✅ Audit your current software costs—Are you paying for features you don’t need?
✅ Assess compliance risks—Are you meeting local and global regulations?
✅ Evaluate long-term scalability—Will your current software grow with your business?
✅ Compare costs—Are your subscription fees higher than the cost of owning a custom solution?

Many global enterprises have already made the shift. The question is: will you?

Custom Software is an Investment, Not an Expense

For enterprises handling large-scale operations, payroll, finance, supply chain management, and compliance-heavy processes, off-the-shelf software will never be enough.

With Stransact’s technology services, you get:
🔹 Tailored software built for your business needs
🔹 Cost-effective alternatives to overpriced third-party tools
🔹 Full compliance with industry and regional regulations
🔹 Long-term savings by eliminating unnecessary subscriptions

Are you ready to stop losing millions on software you don’t own? Let’s discuss how a custom solution can cut costs, improve compliance, and give you total control.

 

Generative AI is reshaping Nigeria’s business landscape. With the Nigerian AI market projected to reach $1.40 billion by 2025 and potentially $4.64 billion by 2030, this surge reflects more than a trend; it signals an economic transformation. The World Trade Organization estimates that Nigeria, along with three other African nations, could share in a $136 billion economic boost driven by AI.

Yet, many Nigerian businesses have not fully integrated AI into their operations, missing opportunities for innovation, efficiency, and competitive advantage. Ignoring AI is no longer viable. This article explores the hidden costs of ignoring AI and how Nigerian businesses can harness its potential to stay ahead.

A Brief History and Post-COVID Popularization of AI

AI’s evolution has been decades in the making, with early developments focusing on rule-based systems and expert programs in the 20th century. The advent of machine learning in the early 2000s marked a shift towards data-driven models, enabling systems to improve with experience. However, it was the rise of deep learning in the 2010s that truly revolutionized AI, making technologies like image recognition, natural language processing, and generative models viable at scale.

The COVID-19 pandemic acted as a major accelerator for AI adoption. Businesses faced unprecedented challenges, including remote work, supply chain disruptions, and changing consumer behaviors. AI provided solutions by enabling automation, improving remote collaboration, and delivering real-time analytics to navigate uncertainty.

Current AI Trends and its Global Adoption

The adoption of generative AI has seen a significant surge globally. According to recent surveys, 72% of organizations are now using some form of AI, up from 50% just a year ago. This rapid uptake is driven by the tangible benefits AI offers, such as increased productivity and cost savings. Leading businesses are leveraging generative AI in multiple areas, including marketing, sales, product development, and IT.

The Hidden Costs of Ignoring AI

• Operational Inefficiencies
  Businesses that ignore AI face significant operational inefficiencies. Without AI, processes remain manual and time-consuming, leading to slower operations and higher labor costs. For example, tasks that could be automated, such as data entry, customer support, and inventory management, continue to require substantial human effort. This not only increases operational costs but also reduces overall productivity and efficiency.

• Competitive Disadvantage
  Competitors leveraging AI gain significant advantages through optimized operations and enhanced customer experiences. AI-driven insights allow them to predict trends and respond swiftly to market changes. Businesses that neglect AI risk losing market share and customer loyalty.
• Missed Opportunities for Innovation
  By not leveraging AI technologies, businesses miss out on numerous opportunities for innovation and growth. AI can drive innovation by enabling the development of new products and services, optimizing existing processes, and uncovering new business models.For instance, AI can help identify emerging market trends, personalize customer experiences, and streamline supply chain operations. Without AI, businesses are unable to fully capitalize on these opportunities, limiting their potential for growth and success.

 

Read More: Navigating Global Challenges Affecting Nigeria’s Manufacturing Industry

Empowering Businesses with Generative AI

Generative AI has revolutionized how businesses approach operations, decision-making, and innovation, enabling them to achieve more with less effort. By optimizing workflows, managing schedules, and improving time management, AI enhances daily productivity, allowing teams to focus on strategic goals. It analyzes vast amounts of data to identify trends, track customer behavior, and provide actionable insights, helping businesses stay competitive. AI also automates repetitive tasks, reducing errors and increasing efficiency across various functions, from customer support to data management.

In addition to these benefits, AI applications such as predictive maintenance, dynamic pricing, and supply chain optimization streamline operations and reduce costs. Predictive maintenance uses real-time data to foresee equipment failures, minimising downtime and optimising maintenance schedules. Dynamic pricing adjusts pricing strategies in real-time based on demand, competitor behavior, and market conditions, maximizing revenue. Supply chain optimization forecasts demand, manages inventory, and streamlines logistics, ensuring efficient operations and cost reduction.

Furthermore, AI enhances recruitment processes, generates optimized product designs, and enables real-time adaptation in production lines. Technologies like federated learning, TinyML, and AI-driven sustainability promote innovation while preserving privacy and reducing environmental impact. By leveraging these AI capabilities, businesses can unlock new opportunities, drive growth, and maintain a competitive edge in the market.

 

Read More About our IT & Digital Transformation Services

 

Use Cases for Nigerian Businesses

AI offers immense potential for driving innovation and solving challenges across industries in Nigeria. Here are key applications tailored to specific sectors:

Financial Services

AI is transforming the financial sector by enhancing security, improving customer experiences, and streamlining operations. Nigerian banks and fintech companies can utilize AI for:

• Fraud Detection: AI identifies suspicious transactions in real time, reducing financial crimes.
• Personalized Financial Advice: AI analyzes customer data to offer tailored investment plans and financial recommendations.
• Automated Customer Service: AI-powered chatbots provide 24/7 support, handling routine inquiries and freeing up human agents for complex issues.

Agriculture

In a nation where agriculture remains a vital economic driver as the largest contributor to the GDP, AI is paving the way for smarter farming practices:

• Optimized Farming Practices: AI offers insights on soil conditions, weather patterns, and irrigation needs, enabling better resource management.
• Increased Crop Yields: AI-powered predictive analytics help farmers choose the right crops and planting schedules to maximize productivity.
• Real-Time Data Analysis: AI processes data from drones, sensors, and satellites to help farmers make informed decisions.

 

Read More: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

 

Education

AI has the potential to revolutionize education in Nigeria by making learning more accessible and personalized:

• Personalized Learning Experiences: AI adapts content delivery to suit individual learning paces and styles.
• Automating Administrative Tasks: AI simplifies grading, scheduling, and other administrative duties, allowing educators to focus on teaching.
• Virtual Tutoring: AI-powered platforms provide students with interactive and cost-effective tutoring outside the traditional classroom.

Healthcare

In the healthcare sector, AI is addressing critical challenges and enhancing service delivery:

• Disease Diagnosis: AI assists medical professionals in diagnosing illnesses quickly and accurately through advanced image and data analysis.
• Patient Records Management: AI organizes and secures electronic health records for seamless access and updates.
• Telemedicine Services: AI supports remote consultations, enabling patients in underserved areas to access quality healthcare.

Retail

AI is reshaping retail operations and customer engagement, helping businesses adapt to changing consumer behaviors:

• Inventory Management: AI predicts stock needs, reducing overstocking or shortages.
• Demand Prediction: AI analyzes purchasing patterns to forecast future demand, improving supply chain efficiency.
• Personalized Shopping Experiences: AI customizes product recommendations and promotions to enhance customer satisfaction and loyalty.

 

Read More: Economic Resilience: A Nigerian Business Owner’s Guide to Financial Mastery

 

Steps to Begin AI Adoption

Adopting AI can seem daunting, but with the right approach, businesses can seamlessly integrate this transformative technology into their operations. Below are actionable steps to guide businesses on their AI adoption journey.

Assessing Readiness:
Evaluate your organization’s readiness for AI by:

1. Identifying areas for automation.
2. Ensuring access to high-quality data.
3. Assessing IT infrastructure.
4. Analyzing workforce skills and training needs.
5. Gauging cultural readiness for change.

Building a Strategy:
A clear strategy ensures successful integration:

1. Define goals—enhancing productivity, reducing costs, or driving innovation.
2. Start small with pilot projects.
3. Align AI initiatives with business needs.
4. Allocate a realistic budget for tools and training.
5. Manage risks like data privacy concerns.
6. Set KPIs to measure success.

Partnering with Experts:
Collaborating with AI specialists can simplify adoption:

1. Consult experts for tailored solutions.
2. Leverage platforms offering cutting-edge tools.
3. Co-create solutions to address unique challenges.
4. Join AI-focused industry networks to share knowledge.
5. Outsource complex projects if internal resources are limited.

 

Explore our Technology Services

Conclusion

In a world where innovation drives progress, the cost of ignoring AI is far too great. Businesses that fail to embrace this transformative technology risk falling behind, losing their competitive edge, and missing out on unprecedented opportunities for growth and efficiency. The future belongs to those who act now—who invest in AI to innovate, solve problems, and meet the evolving needs of their customers.

Don’t let inaction become your greatest expense. Explore the vast potential of AI today and secure your place as a leader in tomorrow’s economy.

In today’s technology-driven landscape, data security has emerged as a critical concern for organizations across industries. As cybersecurity threats continue to evolve and become more sophisticated, data management has transformed from a mere organizational practice to a strategic defense mechanism. This article delves into the dynamic realm of data security threats and explores how organizations can proactively manage their data assets to safeguard against potential breaches.

Understanding Data Security Threats

 

Data security threats encompass a wide range of risks that can jeopardize an organization’s sensitive information. Among the common threats are malware and viruses, often spread through deceptive email attachments or malicious websites. Phishing attacks are also prevalent, manipulating individuals into divulging confidential data through social engineering tactics. Additionally, ransomware poses a significant threat, encrypting valuable files and demanding payment for decryption. Furthermore, insider threats, both intentional and accidental, as well as advanced persistent threats (APTs), target organizations over an extended period, requiring heightened vigilance.

Proactive Steps for Mitigating Data Security Risks

To proactively mitigate data security risks, organizations should focus on two essential steps:

1. Robust Data Security Measures: Implementing robust data security measures is crucial for defending against cyber threats. This includes deploying firewalls, intrusion detection systems, and encryption protocols to safeguard data from unauthorized access and potential breaches.
2. Comprehensive Data Management Policies: Organizations should develop and enforce comprehensive data management policies that define how data is classified, accessed, and handled. By categorizing data based on its sensitivity and importance, organizations can prioritize the implementation of stringent security measures for critical information.

 

DOWNLOAD OUR EBOOK ON EFFECTIVE CYBERSECURITY FOR ORGANISATIONS

 

Impact on Data Management Practices

The evolving landscape of data security threats has significantly influenced data management practices within organizations:

1. Heightened Focus on Security: Organizations are now placing paramount importance on data security and investing in state-of-the-art cybersecurity solutions to fortify their defenses against potential breaches.
2. Data Classification: Data classification has gained significance, enabling organizations to identify critical information that demands heightened security measures. This approach helps in channeling resources efficiently for data protection.
3. Employee Training: Regular employee training on data security has become imperative. By educating their workforce about the latest threats and best practices, organizations can empower their employees to act as the first line of defense.
4. Compliance Obligations: With industry-specific data security regulations such as POPIA, GDPR, and HIPAA, organizations must ensure compliance to avoid fines and reputational damage.
5. Data Backup and Disaster Recovery: Prioritizing data backup and disaster recovery procedures allows organizations to swiftly recover from cybersecurity incidents and minimize potential damages.
6. Strategic Outsourcing: Some organizations opt to outsource data management to specialized third-party providers, gaining access to advanced security tools and expert insights.

In the face of mounting data security threats, organizations must stay ahead by adopting proactive measures to safeguard their sensitive information. As a leading organization committed to providing cutting-edge solutions, Stransact stands out as a trusted partner in ensuring data protection compliance and fortified systems.

We are Data Protection Compliance Organization (DPCO) certified by the National Information Technology Development Agency (NITDA), and we boast a track record of excellence in performing comprehensive data protection compliance audits. Our team of seasoned experts possesses an in-depth understanding of data security regulations, including NDPR, GDPR, and HIPAA, enabling us to guide organizations seamlessly through the compliance process.

By partnering with Stransact Chartered Accountants for data protection compliance audits, organizations gain a competitive edge in their respective industries as our assessments ensure that their data management practices align with the latest industry standards, effectively mitigating potential risks and vulnerabilities.

 

DOWNLOAD OUR EBOOK ON EFFECTIVE CYBERSECURITY FOR ORGANISATIONS

 

Conclusion

In a rapidly evolving cybersecurity landscape, safeguarding data assets requires a proactive approach. Organizations must embrace robust security measures, comprehensive data management policies, and continuous training to counter the ever-evolving data security threats. By adopting these proactive strategies, organizations can effectively protect sensitive information and uphold business continuity, reinforcing their resilience in the face of cybersecurity incidents.