Digital identity in Nigeria has more domestic problems

also ft; Kenya’s New Bank Compliance

August 10, 2024

CybAfriqué is a space for news and analysis on cyber, data, and information security on the African continent.

Today’s edition explores the various modes of cyber threats, including generative AI, which is predicted to not be as sophisticated soon. Apart from this, different countries are working on their digital identity programmes, although, it comes with district issues you'll find out in the piece. 

— Adebola. 

HIGHLIGHTS 

Kenya’s New Bank Compliance 

Kenya has introduced the ‘purpose of payment’ (PoP) in its transaction codes for citizens in a bid to mitigate cyber threats in the country. In a statement by the NCBA, a Kenyan national bank regulator, the recent development is to adopt ISO 20022 messaging standards. “As part of adopting ISO 20022 messaging standards, the central bank of Kenya mandated the use of PoP codes for RTGS payments.” 

The ISO 20022 was launched in 2022 in line with the Kenyan National Payments Strategy 2022 – 2025. With the latest upgrade, this automatically means banks that fail to comply by 2025 will be subject to pay a fine of $155,000 (KES 20 million) stipulated in the country’s anti-money laundering law. 

With financial fraud on the rise, the PoP does assure banks of total resistance against cyber threats; it will allow transparency in moving payments, especially those with large volumes. 

Digital identity in Nigeria has more domestic problems 

In Africa, several digital identification policies have been introduced. Latest advances have witnessed more African countries like Nigeria, Ghana, South Africa, etc., implement policies to enable digital identity.

Following the Covid-19 pandemic, countries across the globe were increasingly operating digitally. In 2019, the National Identity Management Commission (NIMC) began a compulsory National Identification Number (NIN) registration for Nigerians. The 11-digit number also represents a legal status allowing citizens to vote, open bank accounts, and enrol in social security schemes, among others. By 2020, several Nigerians have registered necessary privacy details. 

The digital ID ecosystem on the continent still lacks lustre partly due to a lack of infrastructure, among a host of other reasons that affect many developing countries. However, there are more problems than meets the eye, such as the registration process, which has been used as a money-making scheme for officials.

Some undercover and unauthorised individuals have also been caught issuing fake NINs to people heightening digital identity problems in the country. 

Experts have noted that embracing digital IDs has the potential to boost the African economy and present a proof system against cyber threats. With underlying corruption in Nigeria, the possibility of embracing a digital framework is misunderstood as it has become a tool for scams posing even huge domestic risks. 

FEATURES

  • In a 2023 report by LexisNexis recently analysed, generative AI known to be part of the several scam mechanisms have affected a huge number of individuals and companies, globally. The report identified that in some years to come, it will become less intricate. 

  • Africa is becoming a testing site for cyber threat actors owing to the country’s susceptibility, however, several indigenous cyber resilience firms have been simultaneously established. Share

HEADLINES

  • In Nigeria, Data Protection Commission meets Bill & Melinda Gates Foundation for collaboration - Cybersecurity Magazine 

  • Exclusive: First Bank sacks over 100 employees after ₦40bn fraud, freezes their accounts - TechCabal 

  • Nigeria: NIN Project Gains N8.6bn from Forex Devaluation in 2023 – World Bank - Regtech Africa

  • Inside Shago Payments and Fidelity Bank’s ₦811 million chargeback tussle - TechCabal 

  • Former South Africa Home Affairs official jailed for passport fraud - Biometric Update 

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