Nigeria’s biggest cyber risk may be its small businesses—FoubsLabs Founder

In late 2013, a breach at Target exposed payment card data of around 40 million customers and personal information of about 70 million people. This intrusion began when hackers compromised Fazio Mechanical Services, a Pennsylvania-based HVAC contractor that had legitimate access to Target's network for electronic billing and project management.

The hackers used Fazio's credentials to gain access to Target's network and move deeper into its systems. In 2026, a similar risk looms for Nigeria, where small businesses connected to larger institutions are particularly vulnerable. Jephte Ioudom, founder of FoubsLabs, explains that even large banks, telcos, and fintechs are not immune, as their cybersecurity measures were built for older threats and can be bypassed by advanced AI-generated phishing emails and cloned voices.

On the other end, many Nigerian MSMEs and smaller fintechs have minimal cybersecurity infrastructure. Ioudom explains the mechanics of a third-party breach: an attacker compromises a business with weak security, stays hidden for days or weeks, and then moves deeper into the larger institution's systems. This tactic has become increasingly common, with third-party involvement appearing in 48% of data breaches globally in 2026, up from 30% the previous year.

AI-enabled breaches have become more prevalent, costing organizations an average of $6 million each. Ioudom emphasizes that larger institutions must take the lead in securing the ecosystem, as they have the resources to do so, while smaller businesses struggle with limited technology and budgets.