Since the release of the circular by the CBN regarding the cybersecurity levy, Nigerians have criticized it, prompting legislators to scrutinize it further. Recently, the Senate committee clarified that the cybersecurity levy applies to financial institutions and telecom companies, not to individuals and bank customers.
Why It Matters
Senator Shehu Umar Buba’s clarification on the cybersecurity levy announced by the Central Bank of Nigeria (CBN) is crucial for understanding its scope and impact. It addresses concerns among individuals and bank customers about the levy’s demand, particularly its perceived expense and unfavorable impact on Nigerians amidst the current economic situation. He emphasized that the levy targets specific sectors, namely financial institutions and telecom companies, rather than individuals.
What They Are Saying
Senator Buba emphasized that the cybersecurity levy is explicitly aimed at enhancing cybersecurity measures and national security in Nigeria. He clarified that the levy is not targeted at Nigerian citizens or individuals but rather at designated businesses listed in the Cybercrime Act 2015.
In his words “The Act is very explicit about who is responsible for the payment, not Nigerian citizens or individuals. The relevant Section of the Cybercrime Act 2015 listed the businesses required to pay the levy: telecommunications companies, Internet Service Providers, Banks, Insurance Companies, the Nigerian Stock Exchange, and other Financial Institutions.”
The amendment bill, signed into law in February 2024, reflects a collaborative effort involving various stakeholders, including the government, industry players, civil society, and academia.
The levy amount, set at 0.5 percent (0.005) of electronic transactions by specified businesses, will be remitted to the National Cybersecurity Fund administered by the Office of the National Security Adviser (ONSA).
Bottom Line
The cybersecurity levy is part of a collective effort to protect national security and the economy from cyber threats and financial crimes. While concerns have been raised about the economic impact of the levy, its implementation is primarily aimed at safeguarding critical sectors and infrastructure. Overall, the clarification provided by Senator Buba underscores the importance of stakeholder engagement and transparency in cybersecurity initiatives.
