INSTITUTIONAL CYBER RISK CONTROL AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
OSUNYIKANMI Moses Albert, SALEMCITY Ayobaye (PhD), ADEGBOYEGUN Adekunle Emmanuel (PhD), OLORUNTOBA Rufus Sunday (PhD) · DOAJ (DOAJ: Directory of Open Access Journals) · 2026
Research Problem: As cyber-crimes increase globally, Nigerian Deposit Money Banks (DMBs) invest in cybersecurity to mitigate any foul play. Despite this, it still remains empirically unclear whether human-capacity-based and audit-based cyber risk controls generate measurable financial returns, as existing studies largely treat such controls as compliance costs rather than testing their econometric link to profitability. Methods/Theory: Anchored jointly in Human Capital Theory and Risk Management Theory, the study adopts an ex-post facto panel design to examine the effect of Employee Training and Awareness (ETA) and Regular Security Audit and Assessment (RSAA). Ten listed Nigerian DMBs were purposively selected between 2015 and 2024. Results: Effects of ETA (β = 10.581, p < 0.05) and RSAA (β = 227.832, p < 0.01) on NOPAT were positive. They jointly explain 81.9% of its variance (F = 199.419, p < 0.001). RSAA emerged as the main financial-performance driver in the study. Conclusion: Human capacity development and institutional audit controls are complementary, cybersecurity governance levers that jointly and significantly shape DMB profitability, with the structural (audit) pathway carrying a disproportionately larger financial return. Key Contribution to Knowledge: The study provides one of the first integrated econometric tests of Human Capital Theory and Risk Management Theory within a single panel model for Nigerian DMB cybersecurity governance. Recommendation: Nigerian DMBs should institutionalise mandatory, continuously updated cybersecurity training alongside at least annual internal and external security audits, while the Central Bank of Nigeria should mandate disclosure of cybersecurity training and audit expenditure to strengthen market discipline.