Why Cybersecurity Is Important To Nigerias Startups, Smes

In an era where digital innovation drives economic growth, cybersecurity has become a fundamental concern for startups and small and medium enterprises SMEs in Nigeria. As businesses increasingly rely on digital platforms for productivity, customer engagement, and market expansion, they face escalating cyber threats that could undermine their operations. The legal implication of cybersecurity breaches, coupled with the evolving regulatory terrain, requires a careful examination of the rights, obligations, and liabilities of Nigerian startups and SMEs under extant laws.

Cyberattacks can result in significant legal liabilities, including regulatory penalties, contractual breaches, and reputational damage. The unauthorized exposure of sensitive customer data can trigger enforcement actions under the Nigeria Data Protection Act, 2023 NDPA, while financial losses from cyber fraud may lead to legal disputes under contract law. Additionally, failure to report cyber incidents within statutory timelines, as mandated under the Cybercrimes Prohibition, Prevention, Etc. Amendment Act, 2024, could attract sanctions.

Under the Cybercrimes Amendment Act, 2024, businesses must comply with several cybersecurity requirements, including: Payment of a 0.5 cybersecurity levy on electronic transactions, mandatory reporting of cyber incidents within 72 hours and implementation of sector-specific cybersecurity measures through Computer Emergency Response Teams CERTs.