In an effort to enhance cybersecurity protocols, the Central Bank of Nigeria (CBN) mandates banks and mobile money operators to implement a 0.5% levy on electronic transactions. This directive, outlined in a circular dated May 6, 2024, is applicable to all segments of financial institutions across the country.
The Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 mandates directing 0.5% of electronic transaction values to the National Cybersecurity Fund (NCF). The NCF, overseen by the Office of the National Security Adviser (ONSA), consolidates cybersecurity resources and initiatives. This directive ensures sustained funding for cybersecurity initiatives across sectors. It establishes the NCF as a pivotal entity in bolstering national cybersecurity defenses.
This directive, firmly rooted in legislation, underscores the government’s commitment to bolstering cybersecurity infrastructure and readiness. The initiative strengthens national cybersecurity by directing funds into the NCF, overseen by the ONSA, to counter cyber threats.
Within a fortnight of issuing the circular, the CBN will commence deducting the levy at the initiation of electronic transfers. This deduction must clearly indicate in customers’ accounts as the “Cybersecurity Levy.”
However, certain transactions are exempt from this levy to alleviate the financial burden on essential economic activities. These exemptions include loan disbursements, salary payments, intra-bank transfers, long-term investments, and inter-branch transfers.
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