CBN Introduces Cyber Security Levy to Enhance National Security

By William Emmanuel Ukpoju

In a move to enhance national cybersecurity efforts, the Central Bank of Nigeria (CBN) has announced the introduction of a 0.5% Cyber Security levy on all electronic transactions. The levy, which takes effect two weeks from the date of the announcement, aims to generate funds for the National Cyber Security Fund.

According to a circular released by the CBN, all commercial, merchant, non-interest, and payment service banks are required to implement the directive.

The levy will be applied at the point of electronic transfer origination and deducted by the financial institution. Customers will see a narration of “Cyber Security Levy” on their account statements.

The CBN stated that failure to remit the levy is an offence, punishable by a fine of not less than 2% of the annual turnover of the defaulting business.

This development follows the amendment of the Cybercrime (Prohibition, Prevention, etc) Act 2015, signed into law by President Bola Tinubu in February 2024.

The amendment aims to address gaps in the principal Act and empower the National Security Adviser to monitor compliance.

The introduction of the Cyber Security levy is expected to generate revenue for the National Cyber Security Fund, which will be administered by the Office of the National Security Adviser.

The fund will support initiatives aimed at enhancing national Cyber Security and protection against cyber threats.