Cybersecurity Levy For Telcos, Financial Institutions Not Citizens – Senator Buba

• Senator Shehu Umar Buba clarifies that the cybersecurity levy targets financial institutions and telecom companies, not individual citizens
• The levy, introduced to combat cybercrime, was collaboratively developed and aims to enhance cybersecurity without punishing citizens economically

Senator Shehu Umar Buba, Chairman of the Senate Committee on National Security and Intelligence, has clarified that the cybersecurity levy announced by the Central Bank of Nigeria (CBN) is not aimed at individual citizens or ordinary bank customers.

In an interview with Economic Confidential, Senator Buba emphasized that the levy targets financial institutions and telecommunication companies due to their vulnerability to financial crimes and cyber fraud.

He pointed out that the Cybercrime Act clearly outlines the businesses responsible for paying the levy, including telecommunications companies, internet service providers, banks, insurance companies, the Nigerian Stock Exchange, and other financial institutions.

Furthermore, Senator Buba explained that the amendment bill, which introduced the cybersecurity levy, was a collaborative effort involving the government, industry players, civil society, and academia. The bill was passed into law in February 2024 to address the country’s annual loss of $500 million caused by cybercrime.

Concerning concerns about the levy’s economic impact, Senator Buba assured that its implementation was not intended to punish the people. Instead, it provides a comprehensive legal framework to deter, investigate, pursue, and prosecute cybercriminals, ultimately enhancing cybersecurity and economic stability.

The cybersecurity levy, equivalent to 0.5 percent of all electronic transactions by specified businesses, will be remitted to the National Cybersecurity Fund under the Office of the National Security Adviser (ONSA). Certain transactions, such as loan disbursements, salary payments, and intra-account transfers, are exempted from the levy, as confirmed by a circular issued by the CBN.