An Assessment of the Legal Validity of the Cybersecurity Levy in Nigeria

Abstract

The apex financial institution in Nigeria (Central Bank of Nigeria), on May 6th 2024, ordered the banks and all financial service providers in the country to commence the process of deducting cybersecurity levy from their customers’ businesses and transactions in Nigeria. The administration of the levy, according to the apex bank, would be carried out by the Office of the National Security Adviser (ONSA). The Circular bearing the information, was issued to different categories of Banks, Mobile Money Operators, Payment Service providers, and others, and was co-signed by the Director of Payments System Management and the Director of Financial Policy and Regulation of the Central Bank of Nigeria. The directive has generated a lot of concerns from well-meaning Nigerians. This Article aimed at examining the legality or otherwise of the cybersecurity levy in Nigeria. The study adopted doctrinal research methodology for interrogating the legal structure for cybersecurity in Nigeria. Findings from the study revealed amongst others that the administration of the cybersecurity levy is inconsistent with the provision of section 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) as well as the Section 2 of the Federal Inland Revenue Service (Establishment) Act, (FIRSEA) 2007. The research ended with recommendations centred around amendment of the cybersecurity Act to reflect the provision of Constitution, addressing the issue of timing of the implementation among other things.