CYBERSECURITY MEASURES AND THE INTEGRITY OF FINANCIAL REPORTING IN NIGERIA’S BANKING SECTOR

Abstract

This study investigated the relationship between cybersecurity measures and the integrity of financial reporting in Nigeria’s banking sector, with a specific focus on commercial banks in Rivers State. The integrity of financial reporting was defined in terms of accuracy, timeliness, and reliability, while cybersecurity measures included encryption, firewalls, multi-factor authentication, and employee training. A descriptive survey design was adopted, and data were obtained through structured questionnaires administered to 355 sampled employees across 24 commercial banks. Out of these, 340 questionnaires were duly completed and analyzed, representing a 96% response rate. Data were analyzed using descriptive statistics and Spearman Rank Correlation to test the study’s hypotheses. The findings revealed that firewalls and encryption significantly enhanced reporting accuracy by preventing data manipulation and unauthorized access. Multi-factor authentication demonstrated a strong negative relationship with fraud, thereby improving financial transparency. Furthermore, cybersecurity training significantly improved the timeliness and reliability of financial reports by equipping employees with the skills to identify and mitigate risks. The results confirmed the relevance of the Technology Acceptance Model and the Resource-Based View, which emphasized cybersecurity tools as strategic resources for transparency. The study concluded that adopting robust cybersecurity measures was critical for safeguarding financial reporting integrity. It recommended sustained investment in encryption, mandatory multi-factor authentication, regular training, and stronger IT compliance frameworks.