Bank to Charge 0.5% Cybersecurity Levy on Electronic Transfers

The Central Bank of Nigeria (CBN) has directed banks to start charging a 0.5 per cent cybersecurity levy on electronic transfers in two weeks.

CBN’s directive was announced in a circular signed by Chibuzor Efobi and Haruna Mustafa, directors of payments system management and financial policy and regulation, respectively.

The circular was addressed to all commercial, merchant, non-interest, and payment service banks, among others.

According to the CBN, the directive is a follow-up to earlier letters dated June 25, 2018, and October 5, 2018, regarding compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

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The deduction and collection of the cybersecurity levy are a result of the enactment of the 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.

The levy, equivalent to 0.5 per cent of all electronic transactions, will be remitted to the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA).

Deductions will commence within two weeks, and monthly remittances must be made by the 5th business day of every subsequent month.

Exemptions from the levy include loan disbursements and repayments, salary payments, intra-account transfers, inter-branch transfers, cheque clearing, settlements, Letters of Credits, banks’ recapitalization-related funding, and transactions involving long-term investments.

The CBN has directed all institutions under its regulatory purview to comply with the provisions of the Act and this circular.