In a bid to bolster cybersecurity measures within the financial sector, the Central Bank of Nigeria (CBN) has issued a directive mandating banks and financial institutions to implement a cybersecurity levy on transactions.
The circular, released on Monday, outlines the commencement of this levy within two weeks from the date of issuance.
According to the circular, all commercial, merchant, non-interest, and payment service banks, as well as other financial institutions, mobile money operators, and payment service providers, are instructed to enforce this cybersecurity levy.
The directive is a follow-up to previous communications dated June 25, 2018, and October 5, 2018, emphasizing compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
The levy is to be applied at the point of electronic transfer origination and subsequently deducted by the financial institution.
This deducted amount will then be remitted to the designated Nigerian Cybersecurity Fund (NCF) account domiciled at the CBN. Customers will see a deduction reflected in their account statement with the narration, ‘Cybersecurity Levy’.
Exemptions from this levy include certain transactions such as loan disbursements and repayments, salary payments, and intra-bank transfers among others.
The CBN aims to streamline and fortify cybersecurity efforts across the financial sector through the implementation of this levy.
This move by the CBN aligns with recent efforts to enhance regulatory oversight and mitigate risks within the financial ecosystem.
It follows closely after directives barring fintechs from onboarding new customers and warnings against engaging in cryptocurrency transactions.
Also, the Federal Government’s directive for the deduction of stamp duty charges on mortgaged-backed loans and bonds demonstrates a broader push for fiscal transparency and regulatory compliance.
The introduction of the cybersecurity levy underscores the CBN’s commitment to safeguarding digital transactions and ensuring the integrity of Nigeria’s financial infrastructure amidst evolving cyber threats.
As financial institutions gear up for implementation, the levy is poised to play a pivotal role in fortifying the nation’s cybersecurity resilience in an increasingly digitized landscape.