The Central Bank of Nigeria (CBN) has issued a directive compelling banks to impose a 0.5% cybersecurity levy on electronic transactions.
Effective immediately, the implementation of this levy is set to commence within two weeks, as stated in a circular released by the CBN.
This levy, in compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015, has been reinforced following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024. Under Section 44 (2)(a) of the Act, financial institutions are mandated to remit 0.5% of all electronic transaction values to the National Cybersecurity Fund, managed by the Office of the National Security Adviser.
The CBN emphasized that the levy will be deducted at the point of electronic transfer origination and reflected in customers’ accounts with the narration, ‘Cybersecurity Levy’. Monthly remittances of the collected levies to the National Cybersecurity Fund are required by the fifth business day of each subsequent month.
However, certain transactions are exempt from this levy, including loan disbursements and repayments, salary payments, and specific intra-bank transfers.
The CBN’s move aligns with its recent efforts to enhance regulatory measures within the financial sector, such as the directive prohibiting fintechs from onboarding new customers and warning against cryptocurrency transactions on their platforms.
This directive follows closely on the heels of another financial mandate by the Federal Government, instructing Deposit Money Banks to implement a 0.375% stamp duty charge on all mortgaged-backed loans and bonds.
