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Information technology expert Adedun Adeniyi said Nigeria needs to improve its cybersecurity and data integrity measures to boost investor confidence, and that significantly improving this would mean that Nigeria would not be able to secure sensitive financial information. It will demonstrate that they are taking proactive steps to protect data, he said.
He also lamented the need for proper data collection processes and the difficulty of the country switching to Sarbanes-Oxley.
SOX is a U.S. federal law enacted in July 2002 to improve the accuracy and reliability of financial disclosures to the boards, management teams, and CPA firms of all U.S. public companies.
In a statement sent to PUNCH Online on Thursday, SOX Senior Analyst, Adeniyi said Nigeria would face major challenges in switching to and implementing IT SOX.
IT experts argued that part of the problem the country will face is the lack of protection for multiple government data systems and data collection.
Adedoyin added that IT SOX implementation must address infrastructure limitations, lack of cybersecurity experts, and high compliance costs.
He said: “Nigerians are required to register their identity documents multiple times across different institutions, each maintaining separate databases and requiring in-person visits to obtain biometrics. These registrations, which have little impact on the lives of Nigerians, often require in-person biometric verification, adding further stress to the lives of Nigeria’s poor citizens.
“The second problem is that data collection in Nigeria lacks the necessary safeguards to protect citizens’ information. For example, the Payday loan app is They collect extensive data about their users, putting the public at risk of exploitation. This lack of protection leaves personal data exposed and leaves them unable to address cybersecurity vulnerabilities that undermine their financial health.
“Separately, news coverage of data breaches and the resulting minimal accountability has led to a decline in public trust, with the public concerned about data collection efforts and widespread digital financial regulations such as IT SOX.” Separately, IT SOX implementation must address infrastructure limitations, lack of cybersecurity experts, and high compliance costs. Frameworks may also need to be adapted to fully support IT SOX.”
Mr. Adeniyi said that despite the challenges that may arise during implementation, having such a robust and modern system in place is the right way to go, citing several reasons why.
He said, “As Nigeria works to attract more foreign investment, the adoption of globally recognized standards like IT SOX can strengthen the country’s financial credibility.” said. Also, alignment with IT SOX could lead to more transparent and efficient corporate governance and improve Nigeria’s reputation in the global market. When supported by the right infrastructure and skilled professionals, these standards increase resilience against financial fraud, cybersecurity breaches, and data misuse, contributing to a stable and reliable financial ecosystem.
“Another reason he cited is that the adoption of IT SOX standards provides an opportunity for Nigerian institutions to build a culture of data protection and corporate accountability. It bridges the gap and ensures that people’s data is managed responsibly and contributes to broader socio-economic development. Over time, businesses can reduce risk and increase operational efficiency. It will be.
“As Nigeria seeks to attract more foreign investment and build global credibility, the implementation of IT SOX will revolutionize corporate governance and cybersecurity practices, leading to a stronger and more resilient financial ecosystem. Implementing these standards will require legal support and infrastructure improvements, but the long-term benefits of increased transparency, data protection, and investor confidence make the case for Nigeria to pursue this path. There is a reason why.
