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The National Information Technology Development Agency (NITDA) and the National Insurance Commission (NAICOM) are in talks to promote cyber security insurance in the country even as proceeds from global cybercrimes hit $8 trillion signaling an urgent need for insurance covers.
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The two organisations expressed mutual commitment to bringing insurance schemes to enterprises and operations within the cyberspace; and accordingly, created a committee of six members, three from each organisation, to spearhead the agreement.
Director General of NITDA, Kashifu Inuwa Abdullahi, who led the agency’s management team to the NAICOM on a recent courtesy visit, reiterated that insurance cover is long overdue as it is now virtually impossible for any business to operate without connecting to the internet.
He said “almost every adult in Nigeria move around with a super computer in his/her hand or pockets, which invariably exposes one to cybercrimes and criminals.”
Global cybercrime as of 2021 was almost $6 trillion and projected to grow by 15% year-on-year and as of today, the figures have increased to about $8 trillion and will reach $10.5 trillion by 2025, Abdullahi expressed quoting industry sources.
His words: “Cybercrime, if you can quantify it as a nation, will be the third largest economy, and it is bigger than all crimes combined together, in terms of cost.
“In view of this, we need to institutionalise cyber insurance because Nigeria loses about N200 bilion to cybercrime annually, imagine that just 0.0% of the Nation’s Gross Domestic Product (GDP) is worth more than N200 billion.
“Looking at this and the rate services are being digitised, coupled with the push for government digital services as well as COVID-19, the pace we are digitising has been accelerated; the future is therefore arriving faster than expected.”
Abdullahi stressed the importance of securing the insurance, averred that whereas, the commission has the primary mandate of insurance, the agency also has certain mandates relating to cyber insurance, including development of Information Technology in Nigeria which cyber security is an integral part.
“Achieving this feat will also translate to strengthening developers of systems to up their game, by taking it through series of tests before taking their products to the market.
“Many countries have institutionalised cyber insurance, Africa inclusive; South Africa, Kenya and Egypt have done so. Looking at our status in Africa as the largest economy and having the most vibrant digital ecosystem as well as the fastest growing digital economy, I think it is the right time for us also to institutionalise Cyber Insurance in Nigeria”, the DG maintained.
The Commissioner for NAICOM, Olorundare Sunday Thomas agreed with the NITDA boss that it has become expedient to have an insurance cover that addresses risks associated with the technology industry.
“Looking at the volume of data that are driven daily, cost associated with data, magnitude and impact of the economy of nations, if there should be any economy that should be more concerned about cybercrime, it should be Nigeria.
“The more we look forward to using technology to resolve many problems, we must also seize the opportunity to increase our workforce”, Thomas added.
The CFI assured the NITDA team of the Commission’s readiness to partner with the agency towards institutionalising cyber insurance.”
