The Central Bank of Nigeria (CBN) has issued a directive to deposit money banks in the country, instructing them to impose a 0.5% cybersecurity levy on transactions.
This directive was communicated through a circular dated May 6, 2024, which was sent to various types of banks, including commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers.
The levy is in accordance with the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and Section 44 (2) (a) of the Act. It states that a levy of 0.5% equivalent to half a percent of all electronic transactions value by the specified businesses should be remitted to the National Cybersecurity Fund (NCF), which will be administered by the Office of the National Security Adviser (ONSA).
The implementation of this levy will begin two weeks from the date of the circular. Financial institutions will deduct and remit the levy at the point of electronic transfer origination, and the deducted amount will be reflected in the customer’s account with the narration “Cybersecurity Levy.” Deductions will commence within two weeks from the date of the circular, and the levies collected will be remitted in bulk to the NCF account at the CBN by the fifth business day of each subsequent month.
Certain transactions are exempted from this levy, including 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, inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, banks’ recapitalization-related funding, only bulk funds movement from collection accounts, savings and deposits, and transactions involving long-term investments, among others.
