The Central Bank of Nigeria (CBN) has emphasized the need for strict compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015, specifically regarding the National Cybersecurity Levy. This directive follows previous communications from the CBN in 2018 and addresses updates from the Office of the National Security Adviser (ONSA) on cybersecurity funding.
According to the amendment in the act set to take effect in 2024, a levy of 0.5% on all electronic transactions will be introduced to support the National Cybersecurity Fund (NCF), managed by the ONSA. This levy will be deducted at the source of the transaction and is applicable to a wide range of financial institutions including commercial banks, merchant banks, non-interest banks, payment service providers, mobile money operators, and other financial institutions.
Key points include:
1. The levy is to be deducted immediately from electronic transfers, with the deduction clearly marked as “Cybersecurity Levy” in customer accounts.
2. Institutions are required to start making these deductions within two weeks from the announcement and ensure monthly remittances to the NCF account at the CBN by the fifth business day of the following month.
3. Financial institutions are expected to update their systems accordingly to facilitate the remittance process. Mobile money operators and various banks have a four-week window to comply, while other financial institutions have up to eight weeks.
4. Certain transactions are exempt from this levy to avoid double-charging, including loan disbursements, salary payments, and transfers within the same customer accounts, among others.
5. Failure to comply with these regulations can result in a fine of at least 2% of the annual sales of the defaulting entity.
This initiative is part of the government’s effort to bolster national cybersecurity infrastructure and readiness by ensuring a steady funding stream through the transactions that increasingly represent the backbone of Nigeria’s financial system. The CBN has called for all regulated institutions to adhere strictly to these guidelines to avoid penalties and contribute to the nation’s cybersecurity efforts.
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Last modified: May 7, 2024
