News Desk
The Central Bank of Nigeria (CBN) has directed banks to initiate a 0.5% cybersecurity levy on transactions. A circular issued by the apex bank, signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation, states that implementation will commence two weeks from the announcement date. This directive extends to commercial, merchant, non-interest, and payment service banks, as well as mobile money operators.
The circular explains that this follows previous communications from June 25, 2018, and October 5, 2018, in compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. It cites the recent amendment to the Act in 2024, which mandates a 0.5% levy on all electronic transactions, to be remitted to the National Cybersecurity Fund under the Office of the National Security Adviser.
The CBN emphasizes that all banks, financial institutions, and payment service providers must adhere to this directive. The levy will be applied at the point of electronic transfer origination, with the deducted amount reflected in the customer’s account under the narration “Cybersecurity Levy.”
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However, certain digital transactions are exempt, such as salaries, loan disbursements, intra-bank transfers, inter-bank transfers for customers with accounts at different banks, and social welfare payments like pensions.
The circular specifies that deductions should commence within two weeks from its issuance, with monthly remittances due to the NCF account at the CBN by the fifth business day of each subsequent month.
Non-compliance with levy remittance attracts penalties, including fines of not less than two percent of the defaulting business’s annual turnover upon conviction.
Techrectory with Agency Report.
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