Cyber Security Levy: CBN orders banks, PSPs to begin collection and remittance

Cyber Security Levy: CBN orders banks, PSPs to begin collection and remittance

What this means:
The Central Bank of Nigeria’s recent mandate for financial institutions to implement a cybersecurity levy represents a significant shift in the regulatory landscape of Nigeria’s digital economy.
▪ As per the directive, banks, mobile money operators, and payment service providers are required to deduct 0.5% from the value of all electronic transactions, funneling these funds into the National Cyber Security Fund.
▪ Managed by the Office of the National Security Adviser, this fund is designed to bolster the country’s defenses against cyber threats, which are increasingly prevalent in our interconnected digital world.
▪ This move underscores the government’s commitment to safeguarding digital assets and maintaining the integrity of financial transactions against potential cybercrimes.
However, this new levy also poses challenges and implications for consumers and businesses alike.