The Central Bank of Nigeria (CBN) has ordered banks to enact the process of deduction of cyber security levy to be administered by the office of the National Security Adviser (NSA).
This was disclosed in a circular to different categories of banks, mobile money operators, payment service providers and others signed by the apex bank’s Director of payments system management, Chibuzor Efobi and Director of financial policy and regulation, Haruna .B. Mustafa.
According to the statement, the deduction and collection of the cyber security levy is sequel to the enactment of the 2024 cyber crime (prohibition, prevention etc) amendment Act of 2024 which provides for a 0.5% deduction of the value of all electronic transactions to the National Cyber Security Fund which would be administered by the office of the NSA.
Furthermore, the circular noted that the deduction would be described as Cyber security levy and the relevant financial institutions should begin deduction in two weeks following the secular.
It stated,
Also, the apex banks warned that the penalty for defaulting is as prescribed in the amended Cyber Crime Prohibition and Prevention Act which is liable to a fine amounting to no less that 2% of the turnover of the defaulting business and others.
The Central Bank of Nigeria’s recent mandate for financial institutions to implement a cybersecurity levy represents a significant shift in the regulatory landscape of Nigeria’s digital economy.
However, this new levy also poses challenges and implications for consumers and businesses alike.