In a recent development, the Central Bank of Nigeria has directed banks and other financial institutions to implement a new cybersecurity levy on all electronic banking transactions. This directive comes as a result of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024, which aims to strengthen the country's cybersecurity measures.

Key Points about the Cybersecurity Levy

1. The Levy:

A new levy of 0.5%, equivalent to half a percent, will be applied to all electronic transactions.

2. Responsibility:

The levy will be paid by the originator of the electronic transaction and deducted by the financial institution. The deducted amount will be reflected in the customer's account with the narration "Cybersecurity Levy."

3. Fund Administration:

The deducted levies will be remitted to the National Cybersecurity Fund, which will be administered by the Office of the National Security Adviser.

4. Implementation Timeline:

Financial institutions have been given a two-week deadline to update their systems and commence the deduction and remittance of the levy. The collected levies must be remitted in bulk to the NCF account domiciled at the CBN by the fifth business day of the following month.

5. Penalties:

Failure to remit the levy can result in penalties, including a fine of up to 2% of a financial institution's annual turnover.

This new cybersecurity levy is part of the government's efforts to enhance the country's digital security and protect citizens from the growing threat of cybercrime. While it may add an additional financial burden on Nigerians, the levy is expected to contribute to the development of a more secure and resilient digital ecosystem.