CBN Re-introduce security levy

The Central Bank of Nigeria (CBN) has announced plans to re-introduce and enforce the payment of the Cybersecurity Levy on electronic transactions by Nigerians.

This plan, announced in its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document released on Tuesday, September 17, stipulates that banks and other financial institutions must deduct the levy from all electronic transactions.

According to the document, the levy has been reduced from the 0.5% earlier announced in May 2024 to 0.005%.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,” the document states.

“The levy’s proceeds would go towards creating a cybersecurity fund specifically designed to bolster Nigeria’s banking sector’s defences against online attacks. The CBN stresses the significance of cybersecurity measures and requires payment service providers (PSPs), banks, and other financial institutions (OFIs) to comply with minimal cybersecurity standards.

“These standards include the appointment of Chief Information Security Officers (CISOs) to oversee cybersecurity compliance, in line with the 2022 risk-based cybersecurity framework.

“Pursuant to the circular titled ‘Issuance of Risk-based Cybersecurity Framework and Guidelines for Deposit Money Banks and Payment Service Providers’ referenced BSD/DIR/GEN/LAB/11/25, and dated October 10, 2018, issued by the CBN to combat the increasing cyber security threat in the banking industry, banks and Payment Service Providers (PSPs) are mandated to adhere to the guidelines on the risk-based cyber security framework”, the document explains.

While the apex bank is yet to announce a date for the re-commencement of the charges, THEWILL recalls that the CBN had in May this year, instructed banks to start the deduction of the cybercrime fee from customers’ transactions.

President Bola Tinubu, however, directed the suspension of the policy for proper review following widespread public outrage by Nigerians who lamented the hardship they were already going through.