CBN reinstates Cybersecurity Levy public outcry forced it to abandon

Thursday, 19 September 2024 04:49

CBN reinstates Cybersecurity Levy public outcry forced it to abandon

font size decrease font size increase font size
Print
Email

Rate this item

(0 votes)

CBN reinstates Cybersecurity Levy public outcry forced it to abandon

The Central Bank of Nigeria (CBN) has announced the enforcement of a 0.005 per cent levy on all electronic transactions conducted by banks and financial institutions.

According to the CBN’s monetary, credit, foreign trade, and exchange policy guidelines for the fiscal years 2024-2025, published on Tuesday, the measure is in compliance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.

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

The new development comes against the backdrop of the public outcry against the 0.5 per cent previously introduced by the CBN in May.

The rate generated debate among Nigerians, prompting the House of Representatives to direct the CBN to suspend its implementation.

The levy, which applies to various forms of electronic transactions, is designed to support the development of a robust cybersecurity infrastructure in Nigeria.

The funds collected are expected to be allocated to enhance the nation’s capabilities in cyber intelligence, investigation, and prevention of cybercrimes.

According to a CBN guideline, banks and Payment Service Providers (PSPs) are required to adhere to cybersecurity guidelines issued earlier.

“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.

“Similarly, another framework titled “Issuance of Risk-based Cybersecurity Framework and Guidelines for Other Financial Institutions (OFIs)”, referenced OFI/DOA/CON/ACT/004/155, was issued on June 29, 2022. The guidelines specified the minimum cyber security baseline to be implemented by banks, OFIs and PSPs, and mandated the appointment of a Chief Information Security Officer (CISO) to oversee cyber security issues,” it read.