THE CYBERSECURITY LEVY UNDER THE NIGERIAN CYBERCRIMES (PROHIBITION, PREVENTION, ETC) ACT 2015 (AS AMENDED)

Background

On 3 May 2024, it was reported that the National Security Adviser, Mallam Nuhu Ribadu, had directed relevant persons to initiate mechanisms for the full implementation and enforcement of the Cybercrimes (Prohibition, Prevention etc) Act, 2015 (the “Act”), including the collection of the levy imposed by the Act. The Act1 established the National Cybersecurity Fund (the “Fund”) to be administered by the Office of the National Security Adviser.

The Central Bank of Nigeria (CBN) subsequently issued a circular to all banks, other financial institutions, mobile money operators, and payment service providers on 6 May 2024, directing financial institutions to comply with the Act by applying the Levy on eligible transactions at the point of electronic transfer origination by deducting and remitting 0.5% of the transaction value to the Fund’s account with the CBN through Nigeria Interbank Settlement System.

This article aims to provide an analysis of the applicability of the Levy, as well as the legal issues arising from its proposed application by the CBN.