An expert in Information Technology highlighted the importance of Nigeria enhancing its cybersecurity and data integrity measures to boost investor confidence. The expert emphasized the need for improved data collection processes and the challenges involved in transitioning to the Sarbanes-Oxley Act (SOX), a US federal law aimed at enhancing financial disclosures.
The expert underscored the obstacles Nigeria would face in adopting IT SOX, including multiple government data systems and inadequate data protection measures. The implementation of IT SOX in Nigeria was noted to be hampered by infrastructure limitations, a lack of cybersecurity professionals, and high compliance costs.
Concerns were raised about the inefficiencies in data collection processes in Nigeria, with examples like payday loan apps gathering extensive user data without adequate safeguards, leaving personal information vulnerable to exploitation. The expert also mentioned the decline in public trust due to data breaches and emphasized the importance of establishing a robust system to attract foreign investment and improve financial credibility.
Adopting globally recognized standards like IT SOX was suggested as a means to enhance corporate governance, transparency, and cybersecurity practices in Nigeria. The expert highlighted the benefits of creating a culture of data protection and corporate accountability to drive socioeconomic development and increase operational efficiency in Nigerian institutions. Ultimately, embracing IT SOX standards was portrayed as a step towards building a stronger, more resilient financial ecosystem in Nigeria.