Cybersecurity: CBN imposes 0.5% levy on electronic financial transactions

COMFORT EKELEME, Business Editor

The Central Bank of Nigeria (CBN) has authorized a 0.5% levy on all electronic financial transactions to boost cybersecurity measures in the banking sector.

According to the apex bank, proceeds from this levy will be remitted to the National Cybersecurity Fund (NCF) and managed by the Office of the National Security Adviser (ONSA).

All financial institutions in Nigeria are expected to implement this directive within two weeks from Monday, May 6, 2024.

The levy applies to commercial, merchant, non-interest, and payment service banks.

CBN said its goal is to enhance the cybersecurity infrastructure of banks and safeguard customers’ financial information from cyber threats.

Also, the levy will finance initiatives to prevent and respond to cyber attacks, as well as improve overall banking system security.

Banks are required to inform customers about the levy deductions and its purpose. This proactive move by the CBN aims to address threats in the system and ensure financial system stability.

The generated revenue will fund cybersecurity initiatives and enhance banking system security.

Industry experts view this levy as a necessary step to protect the financial sector from cyber threats.

Nigerian banks have experienced significant financial losses and reputational damage due to cyber attacks in recent years.

This cybersecurity levy will strengthen banks’ cybersecurity infrastructure and safeguard customers’ financial information, ultimately preventing cyber-attacks and ensuring financial system stability.