In today's digital age, where economic activity increasingly relies on interconnected networks and data flows, cybersecurity is fundamental to economic prosperity. Cybersecurity breaches have evolved from isolated incidents to systemic threats that can disrupt entire economies.
The economic impact of a cyber attack goes far beyond the immediate economic loss. These undermine consumer trust, damage brand reputation, and incur long-term operational costs. Furthermore, in sectors such as finance, healthcare, and critical infrastructure, the impact of cyberattacks can be devastating, threatening not only economic stability but also public safety.
cyber attack
Technology experts predict that there will be more online financial crimes and cyber-attacks against businesses. They said this threat will become more deadly than other concerns in 2024 as many businesses could lose funds to cybercriminals. Robust information and communication technology (ICT) systems are essential for preventing and investigating financial crimes or mitigating risks associated with virtual assets in financial markets.
These systems facilitate compliance with established standards or regulations. It also provides a platform that allows you to monitor, track, and analyze digital transactions in real time. ICT systems support secure data storage and encryption technologies, which are critical to protecting sensitive financial data. The advent of digital banking has led to a surge in financial crimes, especially in terms of electronic fraud.
According to the Executive Vice-Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, financial crime is defined as the transaction, abuse, abuse, deception, or manipulation of the financial system for personal gain. or refers to criminal acts related to manipulation. He said these crimes include a wide range of crimes such as insider fraud, money laundering, terrorist financing, proliferation finance, embezzlement, and fraud (electronic fraud, banking, securities, corporate, intellectual property). added.
“These crimes not only have a huge economic and social impact, but can also lead to violent crimes that result in loss of life. “It threatens our security, reliability, stability, security, security and future,” he said.
funding
Effective cybersecurity requires a multifaceted approach that includes technological innovation, talent development, regulatory compliance, and international cooperation. However, these efforts require significant financial investment. Funding cybersecurity not only protects digital assets, but also protects economic prosperity and societal well-being.
Prioritizing investments in cybersecurity as a fundamental element of the national and global agenda requires strategic efforts from governments, businesses, and individuals. By embracing the urgency of funding cybersecurity, nations can strengthen the foundations of their digital economies and pave the way to a safer and more prosperous future.
Funding cybersecurity efforts is more than just an expense; it's an investment that protects the foundations of economic growth and innovation. To ensure this commitment, the Federal Government of Nigeria has introduced a new policy to channel public funds into cybersecurity.
cyber security charges
To ensure compliance with the Cyber Crimes (Prohibition, Prevention etc.) (Amendment) Act 2024, the Central Bank of Nigeria (CBN) has imposed a 0.005 per cent levy on electronic transactions for national cybersecurity purposes on financial institutions in the country. I instructed them to start the deduction. Deposit your funds within the next two weeks.
According to the CBN, the deducted amount should be reflected in the customer’s account with a voiceover saying “Cybersecurity Tax.” In a circular to commercial banks, commercial banks, interest-free banks, payment service banks, mobile money operators and payment service providers posted on its website on Monday, the apex bank said that the levy collected in bulk I was instructed to send money to the bank every month. Open an account with the National Cybersecurity Fund (NCF) by the fifth business day of the following month.
Additionally, system reconfiguration to ensure complete and timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) by commercial banks, merchant banks, non-interest-bearing banks, payment service banks and mobile money operators is expected to continue. He directed that it must be completed within the next year. Other financial institutions (Microfinance Banks (MFBs), Mortgage Banks (PMBs) and Development Finance Institutions) will have to complete the process within the next eight weeks.
CBN emphasized that the law “provides that failure to pay levies is a crime and, upon conviction, shall be punishable by a fine of not less than 2% of the annual turnover of the defaulting entity,” among other things. did. According to the apex bank, exemptions from cybersecurity tax include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank, and domestic branches. This includes intermittent remittances. Banks, clearing and settlement of checks, letters of credit.
Also exempt are bank recapitalization-related financings, savings, and deposits, including transactions involving long-term investments such as Treasury bills, bonds, and commercial paper, government social welfare program transactions, and nonprofit and charitable transactions. According to a report in the New Telegraph, the CBN in his June 25, 2018 circular issued guidelines for the collection of his 0.005 percent levy on electronic transactions of the National Cyber Security Fund.
rejection
Due to the economic situation of the country, the general public opposed the policy and asked the apex bank to withdraw the policy. According to them, the CBN is adding further burden to their plight, pointing out that they already pay high fees for deposits and withdrawals. In addition to VAT, CoT, stamp duty and wire transfer fees, there are USSD charges including all additional charges payable for electricity, DSTV and data.
Some cybersecurity experts who spoke to The New Telegraph pointed out that the CBN did not explain in detail the purpose of the levy. “Cybersecurity is very important, but the CBN needs to guarantee the safety of bank customers' money. We need to explain to the layperson why they have to pay for cybersecurity.
People oppose many government policies because they do not know their benefits, do not understand their benefits, and do not even feel their benefits. Before we introduce any policy or initiative, we must first educate the people about its benefits, which we don't do in Nigeria and that's why people always rebel against government policies,” said the banker. said Taofik Olusanya.
Key investment areas
Experts say there are key areas where governments need to focus their investments to combat cyberattacks. Investment targets must be in technology, infrastructure, research and development, etc.
Technology and infrastructure
Investing in cutting-edge cybersecurity technologies such as artificial intelligence, machine learning, and advanced encryption is critical to detecting and mitigating evolving threats. Additionally, it is essential to upgrade your digital infrastructure to make it more resilient to cyber-attacks, especially as the Internet of Things (IoT) expands. Building a skilled cybersecurity workforce is paramount to addressing the growing talent shortage. Funding for cybersecurity education, training, and workforce development programs helps develop the expertise needed to effectively combat advanced cyber threats.
Research and Development
Encouraging cybersecurity research and development is essential to fostering innovation and staying ahead of new threats. Public-private partnerships and government grants can encourage collaboration between academia, industry, and government agencies and drive technological advances in cybersecurity.
corporate compliance
Investing in compliance with cybersecurity regulations and standards not only reduces legal and regulatory risks, but also strengthens your overall cybersecurity posture. Organizations must allocate resources to continually monitor, evaluate, and improve their compliance framework.
International cooperation
Cyber threats transcend national borders, so international cooperation is essential to address global cybersecurity challenges. We can strengthen cyber resilience globally by funding initiatives that promote information sharing, capacity building, and diplomatic efforts.
Challenges Funding for cybersecurity is essential, but must address challenges such as competing budget priorities, resource constraints, and an evolving threat landscape. But viewing cybersecurity as an enabler rather than a cost center creates opportunities for innovation, economic growth, and competitive advantage.
last line
Cybersecurity requires funding, but governments need to re-strategize the sources of funding that are acceptable to the public and educate the public on the need to seek such funding.
