New Cybersecurity Levy: 0.5% Charge on Electronic Transactions in Nigeria – CBN Order

Nigerians using electronic transactions will soon see a new levy called the cybersecurity levy on their bank statements.

The Central Bank of Nigeria (CBN) has directed all banks and financial institutions to begin charging a 0.5% cybersecurity levy on all electronic transactions.

This directive follows the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024. The collected funds (cybersecurity levy) will be deposited into a National Cybersecurity Fund (NCF) administered by the Office of the National Security Adviser (ONSA).

The levy will be applied at the point of transaction origination, meaning it will be deducted directly from the sender’s account. Banks are required to clearly show the deduction as “Cybersecurity Levy” on customer statements.

The CBN has set a strict timeline for implementation. Deductions will begin within two weeks of the announcement (May 6th, 2024) and must be remitted in bulk to the NCF account by the fifth business day of every following month.

Failure to comply with the cybersecurity levy carries hefty penalties. Non-remittance could result in fines exceeding 2% of a financial institution’s annual turnover.

The CBN aims to improve cybersecurity infrastructure and bolster national defense against cyber threats through this levy. However, the additional charge is likely to be met with mixed reactions from Nigerians, especially those who rely heavily on electronic transactions.

Some experts believe the levy is a necessary step towards strengthening cybersecurity. Others are concerned about the potential burden it places on citizens already facing economic challenges.

The long-term impact of the cybersecurity levy remains to be seen. It’s crucial to monitor its effectiveness in enhancing national cybersecurity while ensuring it doesn’t disproportionately impact Nigerians’ financial well-being.