Salaries, loans, transfers: A list of 14 transactions exempt from the 0.5% cybersecurity tax
The Central Bank of Nigeria (CBN) has issued a significant directive, instructing all financial institutions to implement a 0.5% cybersecurity levy on the value of all electronic transactions. This new measure, effective two weeks from its announcement on May 6, 2024, underscores Nigeria’s commitment to fortifying its digital economy against a backdrop of increasing online threats. The levy is specifically earmarked to fund crucial cybersecurity efforts and enhance infrastructure, safeguarding the integrity and security of electronic transactions across the nation.
Implementing Nigeria’s Cybersecurity Levy
This pivotal initiative is not arbitrary but firmly anchored in legal framework. The CBN’s circular explicitly states that the imposition stems from the recently enacted Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024. Specifically, Section 44 (2)(a) of the Act mandates a levy of 0.5 per cent (0.005), equivalent to half a percent, on all electronic transactions. This tax applies to businesses as specified in the Second Schedule of the Act. All funds collected through this levy are mandated for remittance to the National Cybersecurity Fund, a dedicated pool of resources set to be administered by the Office of the National Security Adviser (ONSA). This strategic allocation of funds reflects a proactive approach to developing robust digital defenses, ensuring the resilience of Nigeria’s financial and electronic transaction ecosystem against evolving cyber threats.
The introduction of this cybersecurity tax marks a defining moment in Nigeria’s efforts to bolster its digital infrastructure and combat the rising tide of cybercrime. By establishing a dedicated National Cybersecurity Fund, the nation aims to cultivate a more secure online environment, fostering trust and stability in its burgeoning digital economy. This move positions Nigeria as a key player in reinforcing digital resilience within the broader African tech landscape, paving the way for safer electronic interactions and contributing to the sustained growth of the continent’s digital future. The levy is a necessary step towards creating a robust defense against an increasingly sophisticated array of online threats.
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