The Central Bank of Nigeria (CBN) has instructed deposit money banks in the nation to commence charging a 0.5% cybersecurity levy on transactions.
In a circular dated May 6, 2024, addressed to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers, the apex bank announced the levy in compliance with the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.
The circular stated, “a levy of 0.5% (0.005), equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule of the Act,’ is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”
According to the CBN, the levy’s implementation would begin two weeks from the circular’s date.
The levy would be applied at the origination point of electronic transfers, deducted, and remitted by the financial institution, with the deducted amount reflected in the customer’s account under the narration, ‘Cybersecurity Levy.’
“Deductions shall commence within two weeks from the date of this circular for all financial institutions, and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month,” the circular added.
Transactions exempted from the levy include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, inter-bank transfers between customers of the same bank, and inter-branch transfers within a bank, among others.
The CBN has recently imposed several financial directives, including halting the onboarding of new customers by fintech firms like Opay and Palmpay and mandating banks to deduct a 0.375% stamp duty charge on all mortgaged-backed loans and bonds.
