Fortifying Digital Defenses: Nigerian Banks and Tech Providers Unite for Cybersecurity Levy

In a decisive move to protect against cyber threats, Nigeria’s Central Bank (CBN) has issued a mandate requiring all banks and Payment Service Providers (PSPs) to collect and remit a new cybersecurity levy. As the country’s digital economy continues to expand, concerns about security vulnerabilities have escalated.

The Cybersecurity Levy: Key Details

• Levy Amount: Set at 0.5% of the value of all electronic transactions.
• Purpose: Directed toward the National Cybersecurity Fund, administered by the Office of the National Security Adviser (NSA).
• Implementation: The CBN’s circular titled “Compliance with the Cybercrime (Prohibition, Prevention etc) Act 2024” outlines the levy’s specifics.

Boosting National Cybersecurity Defenses

The announcement underscores the Nigerian government’s commitment to fortifying digital defenses. The National Cybersecurity Fund, fueled by this levy, will support critical initiatives:

1. Upgrading Cybersecurity Infrastructure:
   • Funds allocated to enhance the technological capabilities of institutions responsible for cybersecurity.
2. Developing a Skilled Workforce:
   • Support for training programs to create a pool of cybersecurity professionals equipped to address evolving threats.
3. Enhancing Public Awareness:
   • Initiatives to educate citizens and businesses about cyber threats and best practices.

Impact on Banks and Customers

• Collection Timeline: Banks and PSPs must begin collecting the levy within two weeks of the circular’s issuance.
• Penalty for Non-Compliance:
  • Non-compliant businesses and entities face a fine equivalent to 2% of their turnover.
• Visible Charge:
  • The levy will appear as a separate line item named “Cybersecurity Levy” on customer transaction statements.

Reactions and Considerations

• Mixed Responses:
  • Some recognize the importance of robust cybersecurity measures, while others express concerns about potential business burdens.
• Key Considerations:
  • Transparency and Accountability: Ensuring transparent fund utilization and holding authorities accountable.
  • Minimizing Customer Impact: Exploring ways to mitigate the levy’s effect on low-value transactions.
  • Long-Term Strategy: Viewing the levy as part of a comprehensive cybersecurity collaboration between public and private sectors.

Conclusion: A Proactive Approach

The CBN’s cybersecurity levy mandate demonstrates proactive steps to safeguard Nigeria’s digital landscape. While initial adjustments may occur, a well-managed National Cybersecurity Fund will significantly enhance the country’s readiness against cyber threats, benefiting businesses and citizens alike. 🌐🔒🇳🇬