Bola Ahmed Tinubu orders suspension of cybersecurity levy: A Bold Move for Nigerian Businesses
In a surprising turn of events, President Bola Ahmed Tinubu has directed the Central Bank of Nigeria (CBN) to halt the enforcement of the contentious cybersecurity levy policy. This decision comes on the heels of widespread debate and public outcry over the levy, which had been met with both support and opposition across the nation.
Background and Controversy:
Last week, we reported on the CBN’s circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy. The policy, based on provisions from the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024, required a 0.5 per cent levy on all electronic transactions. The collected funds were to be remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
However, the House of Representatives raised concerns about the levy, prompting President Tinubu’s intervention. The circular had sparked heated discussions online, with citizens divided on its necessity and potential impact. Some argued that it was essential for improving cybersecurity infrastructure, while others felt it would burden businesses and consumers alike.
Tinubu’s Directive:
The news flying about this recent act - the suspension, shows that President Tinubu’s order to suspend the levy demonstrates his commitment to balancing economic growth and security. It is believed that by requesting a review, he aims to address the concerns raised by various stakeholders, and that the suspension provides an opportunity for dialogue and a thorough assessment of the policy’s implications.
Implications for Businesses:
For businesses, this suspension offers a reprieve. Financial institutions, in particular, were facing tight deadlines for implementation. Now, they have additional time to adapt their systems and processes. Here are the key takeaways:
Remittance Process: Financial institutions must still make their remittances to the NCF account domiciled at the CBN. However, the deadline has been extended, allowing for smoother compliance.
Reconfiguration Timeline: The circular specifies different timelines for reconfiguring systems:
Commercial, Merchant, Non-Interest, and Payment Service Banks: Within four weeks of the issuance of the Circular.
Other Financial Institutions (Microfinance Banks, Primary Mortgage Banks, Development Financial Institutions): Within eight weeks of the issuance of the Circular.
Strict Adherence: The CBN emphasizes strict adherence to the mandate. Failure to comply may result in severe penalties, including fines based on annual turnover.
Smartcomply’s Role: As businesses navigate these changes, Smartcomply—an automated and AI-powered compliance and cybersecurity platform—can play a crucial role. Leveraging state-of-the-art automation and artificial intelligence, Smartcomply offers tailored solutions aligned with various frameworks, including PCIDSS, ISO standards, and more. Here’s how Smartcomply can assist:
Automated Scans: Regularly check your cloud environment for vulnerabilities.
Penetration Testing: Conduct penetration tests quickly and efficiently.
Risk Management: Simplify annual risk assessments with an automated risk register.
Vulnerability Scanning: Verify open ports and active services on your servers.
Flexible Integration: Connect everyday tools to speed up compliance processes.
President Tinubu’s decision to suspend the cybersecurity levy opens a window for dialogue and adjustment. As businesses adapt, Smartcomply stands ready to support them on their compliance journey, ensuring security without compromising growth. Trust, after all, is the foundation of sustainable business success.
Note: For more information or to explore Smartcomply’s solutions, consider booking a demo or visiting our website.
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