Cybersecurity Threats and Financial Performance of Listed Commercial Banks in Nigeria

The study examined the effect of cybersecurity threat on financial performance of listed commercial banks in Nigeria. The study specifically examined the extent to which financial loss from cybersecurity threat affects the earnings per share of listed commercial banks in Nigeria. This study adopted an ex-post facto research design. The population of the study comprises all fourteen (14) listed commercial banks on the Nigerian Exchange Limited. From this population, a sample of ten (10) listed commercial banks were selected using judgmental sampling technique. Data for the study were obtained from secondary sources, particularly the audited annual financial statements of the sampled banks, Nigeria Deposit Insurance Corporation annual reports and Nigeria Inter-Bank Settlement System fraud reports from 2012 to 2023. In addition to the descriptive analysis of the data using measures of central tendency and measures of dispersion, hypothesis testing was conducted using robust least square regression. The study found that financial losses from cybersecurity threats have a negative effect on the earnings per share of listed commercial banks in Nigeria (β = -0.013024, p = 0.0000). In conclusion, cybersecurity risks are not just technical or operational challenges but also crucial financial concerns that directly affect the bottom line. The study recommends that the management of listed commercial banks in Nigeria prioritize investment in robust cybersecurity frameworks by implementing advanced security measures and proactive risk management strategies to minimize financial losses resulting from cyber incidents, safeguarding the bank's financial performance.