In a significant move to bolster cybersecurity, the Central Bank of Nigeria (CBN) has mandated a new levy on electronic transfers to fund the National Cybersecurity Fund (NCF). This directive, aimed at enhancing the nation’ s defense against cybercrimes, requires banks to implement a 0. 5% levy on the value of electronic transactions.
The decision was communicated through a circular signed by Chibuzor Efobi and Haruna Mustafa, directors at the CBN, indicating that the levy’ s implementation will commence in two weeks. This action follows the enactment of the 2024 Cybercrime (Prohibition, Prevention, etc. ) Amendment Act, which under Section 44 (2)(a), stipulates the collection of this levy to support the NCF, overseen by the Office of the National Security Adviser (ONSA).
The CBN’ s circular is a continuation of its commitment to the Cybercrimes Act of 2015, reinforcing the importance of compliance with national cybersecurity measures. Financial institutions are instructed to begin deductions promptly and remit the accumulated funds to the NCF account at the CBN by the fifth business day of each month.
While the levy applies to a broad range of electronic transactions, the CBN has outlined exemptions to prevent undue burden on certain operations. Transactions exempt from the levy include loan disbursements and repayments, salary payments, and intra- account transfers within the same bank or for the same customer across different banks. Additionally, intra- bank transfers, inter- branch transfers, cheque clearing and settlements, Letters of Credits, and transactions related to banks’ recapitalization are excluded.
The levy is expected to have a considerable impact on the financial ecosystem, as it introduces an additional cost to electronic
transfers, a method that has seen exponential growth in recent years. The CBN’s directive aligns with global trends where financial institutions contribute to national cybersecurity initiatives, recognizing the critical role of secure digital infrastructure in
The introduction of the cybersecurity levy by the CBN is a proactive step towards safeguarding Nigeria’ s cyberspace. It reflects the growing recognition of the threats posed by cybercriminals and the need for a well-funded, robust defense mechanism. As the digital economy expands, such measures become increasingly vital to protect consumers and businesses alike from the potential
Financial institutions are now gearing up to implement this levy, which will require adjustments in their transaction processing systems. The CBN has emphasized the importance of adherence to this directive, underscoring the collective responsibility of the banking sector in fortifying the nation’s cybersecurity framework.
As the deadline for the levy’s implementation approaches, stakeholders across the financial sector are called upon to ensure compliance and support the national effort to enhance
cybersecurity. The success of this initiative will depend on the effective collaboration between the banking industry, regulatory bodies, and the government, marking a significant stride in Nigeria’
