CYBERSECURITY MATURITY AND FINANCIAL PERFORMANCE OF LISTED INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) FIRMS IN NIGERIA

Abstract

The persistent concern over the weak financial performance of listed ICT firms in Nigeria despite growing digital investments underscores the need to examine the influence of cybersecurity maturity and ICT capital intensity. This study investigates the effect of cybersecurity disclosure and ICT capital expenditure intensity on the financial performance of listed ICT firms in Nigeria between 2019 and 2024. Using an ex-post facto research design, data were obtained from the audited annual reports of six ICT firms listed on the Nigerian Exchange Group. The study employed descriptive statistics, correlation analysis, diagnostic tests, and panel regression to analyze the relationships among variables. Findings reveal that ICT capital expenditure intensity has a positive and statistically significant impact on financial performance, indicating that increased ICT investment substantially enhances profitability through improved efficiency and innovation. On the other hand, cybersecurity disclosure exhibits a positive but statistically insignificant relationship with financial performance, suggesting that cybersecurity reporting practices in Nigerian ICT firms are still evolving and not yet translating into measurable profitability gains. The study concludes that technological investment is the primary driver of financial performance in Nigeria’s ICT sector. It recommends that firms intensify ICT capital spending, enhance cybersecurity reporting frameworks to attract investor confidence, and adopt leaner management structures to mitigate the inefficiencies associated with large firm size.