Digital insecurity becomes leverage only when authorities recognised by relevant governance bodies convert cyber risk into binding rules, restrictions, or supervisory duties that alter the terms of participation. This process is called institutional conversion. Three pathways matter most: reliability shock, supplier risk governance, and exposure cascade. Comparing the European Union with Nigeria shows that the same mechanism travels across different governance settings but produces different types of binding consequences. In the EU, costs are projected outward through sanctions, supplier restrictions, and resilience rules. In Nigeria, they are absorbed more domestically through infrastructure protection, prudential supervision, and compliance burdens.