CYBER RISKS AND THE NIGERIAN BUSINESS SECTOR: A CRITICAL ANALYSIS OF THE EMERGING CYBER INSURANCE MARKET IN NIGERIA

Abstract

This study explores the impact of cyber risk exposure on the financial security, operational continuity, profitability, and demand for cyber insurance among Nigerian businesses, drawing on data from 250 respondents. Employing a mixed-methods research design, the study integrates descriptive analysis, correlation, and regression techniques to provide a comprehensive examination of the subject. The research reveals that heightened cyber risk exposure significantly undermines the financial security and operational continuity of businesses, with a notable negative effect on profitability. A positive correlation between business size and demand for cyber insurance was identified, suggesting that larger businesses are more inclined to invest in such insurance. Additionally, the study finds a significant performance difference between businesses that invest in cyber insurance and those that do not, indicating the value of insurance in improving business outcomes. The study concludes with recommendations for Nigerian businesses to enhance their cybersecurity measures and invest in cyber insurance to mitigate risks and safeguard financial stability, while urging policymakers to develop supportive regulatory frameworks.