The Central Bank of Nigeria has issued a directive requiring banks to impose a 0.5% cybersecurity levy on transactions. This directive, conveyed through a circular released on Monday, is set to take effect within two weeks from its announcement.
The circular, directed to all categories of banks including commercial, merchant, non-interest, and payment service banks, underscores the intention to combat cybercrimes in line with existing legislative frameworks like the Cybercrimes Act of 2015.
This directive follows up on previous communications dated June 25, 2018, and October 5, 2018, signaling the CBN’s sustained efforts to enhance cybersecurity measures within the financial sector.
The decision to implement this levy is reportedly rooted in the Cybercrime Act of 2024, which mandates a 0.5% deduction from the value of electronic transactions conducted by specified businesses, to be channeled to the National Cybersecurity Fund. Oversight of this fund lies with the Office of the National Security Adviser, with the CBN serving as the custodian.
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A list of the “specified businesses” are shown in the Appendix 1 of the circular below:
All banks and financial institutions are instructed to comply promptly with this directive. According to the circular, the levy will be applied at the initiation of electronic transfers and subsequently remitted to the cybersecurity fund by the respective financial institutions. The implementation is slated to commence within two weeks of the circular’s issuance, with monthly remittances thereafter.
The circular states the consequences of non-compliance, highlighting that failure to remit the levy constitutes an offense punishable by law. Penalties include fines amounting to a minimum of two percent of the defaulting business’s annual turnover, among other sanctions.
This directive has been met with concern from the Nigerian population, already grappling with various economic challenges including low income, high inflation rates, increased costs of fuel and power, and rising food prices. The imposition of an additional levy exacerbates the financial burden on citizens, prompting calls for measures to alleviate the economic strain on the populace.
Source: Central Bank of Nigeria