The Central Bank of Nigeria (CBN) has introduced a cybersecurity levy on all banking transactions, effective May 6, 2024. This directive follows the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.
The levy aims to support the National Cybersecurity Fund, administered by the Office of the National Security Adviser. Here are key aspects of the cybersecurity levy:
1. Levy Rate:
A 0.5% (half percent) levy will be applied to all electronic transactions.
2. Payment:
The originator of the electronic transaction will bear the levy, which will be deducted by the financial institution.
3. Deduction and Remittance:
Financial institutions will deduct the levy and remit it to the National Cybersecurity Fund monthly by the fifth business day of the following month.
4. Implementation Timeline:
Deductions will commence within two weeks from May 6, and financial institutions must update their systems to handle levy deduction and remittance by the specified deadline.
5. Penalties for Non-Compliance:
Failure to remit the levy may result in penalties, including a fine of up to 2% of a financial institution’s annual turnover.
The cybersecurity levy aims to enhance national cybersecurity and protect against cyber threats. It is essential for individuals and businesses to understand these requirements to ensure seamless compliance.
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