Cybersecurity Levy: CBN Orders Banks to Impose 0.5% on Transactions

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CBN Gov , Yemi Cardoso

 By NIYI JACOBS

The Central Bank of Nigeria (CBN) has taken a significant step to enhance cybersecurity measures in the banking sector by ordering banks to charge a 0.5% cybersecurity levy on transactions. According to a circular issued on Monday, the levy will take effect two weeks from today and applies to all commercial, merchant, non-interest, and payment service banks.

The move is aimed at strengthening the cybersecurity infrastructure of banks and protecting customers’ financial information from cyber threats. The levy will be used to fund initiatives aimed at preventing and responding to cyberattacks, as well as enhancing the overall security of the banking system.

The CBN has directed banks to deduct the levy from transactions and remit it to a designated account. The apex bank has also instructed banks to ensure that customers are aware of the levy and its purpose.

This development comes as a response to the growing threat of cybercrime in the financial sector. In recent years, Nigerian banks have faced several high-profile cyberattacks, resulting in significant financial losses and damage to their reputation.

The CBN’s move is seen as a proactive measure to address this threat and ensure the stability of the financial system. The levy is expected to generate significant revenue, which will be used to fund cybersecurity initiatives and enhance the security of the banking system.

Industry experts have welcomed the move, saying it is a necessary step to protect the financial sector from cyber threats. “This levy will help to strengthen the cybersecurity infrastructure of banks and protect customers’ financial information,” said a cybersecurity expert. “It’s a proactive measure that will help to prevent cyberattacks and ensure the stability of the financial system.”