African businesses are facing mounting cybersecurity costs as foreign exchange volatility, advanced cyberattacks and tightening data protection rules squeeze technology budgets across the continent. A report by Heirs Technologies examining cybersecurity developments in Nigeria, Kenya and South Africa found that more than 55 per cent of observed cybercrime cases now incorporate artificial intelligence, with attackers using the technology to automate phishing, create deepfakes and steal digital credentials.
The growing sophistication of AI-powered attacks is making fraud more effective and harder to detect. According to global research cited in the Heirs Technologies report, AI-generated phishing messages achieved click-through rates of up to 54 per cent, compared with 12 per cent for manually crafted attacks. The findings come as 82 per cent of respondents in Sub-Saharan Africa said they or someone in their professional or personal networks had been affected by cyber-enabled fraud in the preceding 12 months.
Currency instability is compounding the security challenge. Many African businesses procure security software, cloud infrastructure and other specialised protection tools priced in dollars and euros, exposing their technology budgets to exchange rate fluctuations. The Heirs Technologies report noted that currency instability was forcing some organisations to reduce the scope of security deployments or leave purchased tools underutilised, potentially creating gaps in their ability to identify and respond to threats.
Regulatory pressures are adding to the complexity. In Nigeria, enforcement of the Nigeria Data Protection Act and the Central Bank of Nigeria's directive requiring domestic payment data to be hosted locally by 1 January 2027 are pushing financial institutions and other businesses to reassess their cloud infrastructure and consider hybrid architectures that balance operational flexibility with local data-hosting obligations. Obong Idiong, Chief Executive Officer of Heirs Technologies, said Africa's digital expansion needed stronger security foundations. 'As cyberthreats become increasingly sophisticated, protecting this growth is essential to sustaining the continent's digital transformation,' he said.
For Nigerian businesses and financial institutions, the combination of rising cybersecurity costs, foreign exchange exposure on technology spending and new data residency rules means either accepting higher technology bills or potentially leaving security gaps that could expose them to fraud and regulatory penalties.