As part of its guidelines for the 2024-2025 fiscal year, the CBN has restated that it will enforce the controversial 0.005% cybercrime levy on electronic transactions.
This levy, mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is designed to enhance Nigeria’s cybersecurity infrastructure and will be deducted from electronic transactions by banks and other financial institutions.
The document states: “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.”
In response to public outcry and concerns about the inflationary impact of the levy, as cited by netizens and the Centre for the Promotion of Public Enterprise (CPPE), the CBN reduced the percentage from the originally proposed 0.5% to 0.005%. The revenue generated from this levy will be directed towards cybersecurity funds to protect Nigeria’s banking system from cyberattacks.
The document further reads: “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, dated October 10, 2018, issued by the CBN to combat the increasing cybersecurity threat in the banking industry, banks and Payment Service Providers (PSPs) are mandated to adhere to the guidelines on the risk-based cybersecurity 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 specify the minimum cybersecurity baseline to be implemented by banks, OFIs, and PSPs, and mandate the appointment of a Chief Information Security Officer (CISO) to oversee cybersecurity issues.”
Also Read: CBN Refutes Claims on a Circluar Claiming to Apprehend P2P Merchants in Nigeria.
As part of broader efforts to strengthen Nigeria’s cybersecurity infrastructure, the CBN enforces minimum cybersecurity standards for banks, financial institutions, and payment service providers. These institutions are also required to appoint a Chief Information Security Officer (CISO) to manage cybersecurity concerns, as mandated in the Risk-based Cybersecurity Framework and Guidelines issued in 2018 and 2022.
Four months ago, Nigerians strongly opposed the introduction of this levy, leading to its suspension by the Federal Government after significant review. During that period, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and other stakeholders called for measures to reduce the financial burden on businesses.
Overall, the CBN continues to enact policies aimed at ensuring the smooth operation of financial institutions in Nigeria. Their recent adjustments to the original proposals reflect a citizens-first approach to addressing this issue.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
