Banks in Nigeria will soon begin implementing a 0.5 percent levy on electronic transfers to enhance cybersecurity measures. This directive from the Central Bank of Nigeria aims to support the provisions outlined in the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. Learn more about the impact of this levy on the country's cybersecurity infrastructure.
Enhancing Cybersecurity Measures in Nigeria
( Credit to: Businessday )
In a move to enhance cybersecurity measures in Nigeria, banks will soon implement a 0.5 percent levy on electronic transfers. This directive, issued by the Central Bank of Nigeria (CBN), aims to support the provisions outlined in the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
The introduction of this cybersecurity levy is a significant step towards bolstering the country's cybersecurity infrastructure. With the increasing prevalence of cybercrimes, it is crucial for financial institutions to invest in robust security measures to protect customer data and financial transactions. The funds collected through this levy will contribute to the National Cybersecurity Fund, enabling the government to further strengthen its cybersecurity initiatives and protect the nation's digital landscape.
Implementation of the Cybersecurity Levy
The Central Bank of Nigeria (CBN) has issued a circular to all commercial, merchant, non-interest, and payment service banks, directing them to implement a 0.5 percent levy on electronic transfers. This levy is a result of the enactment of the Cybercrimes (Prohibition, Prevention, Etc.) Amendment Act, which mandates specified businesses to remit 0.5 percent of all electronic transaction values to the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA).
The implementation of the levy is set to begin within two weeks from the date of the circular. Financial institutions are required to remit the collected levies in bulk to the NCF account domiciled at the CBN by the 5th business day of each subsequent month.
Exemptions from the Cybersecurity Levy
While the cybersecurity levy will be applied to most electronic transfers, certain transactions will be exempt from this levy. Loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank, inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, banks' recapitalization-related funding, savings and deposits, and transactions involving long-term investments will not be affected by the levy.
Compliance and Contribution to Cybersecurity Initiatives
Financial institutions operating in Nigeria are urged to comply with the provisions outlined in the Cybercrimes (Prohibition, Prevention, Etc.) Act and the directives stated in the CBN circular. By doing so, they will fulfill their regulatory obligations and contribute to the collective effort in combating cybercrimes and safeguarding the nation's digital economy.
Conclusion
The introduction of the cybersecurity levy on electronic transfers in Nigeria demonstrates the government's commitment to addressing the growing threat of cybercrimes. This levy will provide the necessary financial resources to bolster cybersecurity measures and protect the digital infrastructure of the country. Financial institutions play a vital role in this endeavor by adhering to the directives and contributing to the National Cybersecurity Fund, ensuring a safer and more secure digital environment for all.
