The Central Bank of Nigeria (CBN) has instructed banks nationwide to impose a 0.5 percent cybersecurity levy on electronic transfers. Issued in a circular signed by Chibuzor Efobi and Haruna Mustafa, Directors of Payments System Management and Financial Policy and Regulation, respectively, the directive mandates banks to commence the levy’s implementation within two weeks.
The circular, addressed to all commercial, merchant, non-interest, and payment service banks, follows up on earlier correspondence dated June 25, 2018, and October 5, 2018, regarding compliance with the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
According to the CBN, the deduction and collection of the levy are under the enactment of the 2024 Cybercrime Act (Prohibition, Prevention, etc.) Amendment Act. The levy, equivalent to 0.5% of all electronic transaction values specified in the Act’s second schedule, will be remitted to the National Cybersecurity Fund (NCF) administered by the Office of the National Security Adviser (ONSA).
Financial institutions are directed to commence deductions within two weeks and remit the collected levies monthly to the NCF account domiciled at the CBN by the 5th business day of each subsequent month. The circular emphasizes compliance with the Act’s provisions and the directive.
Specific transactions, including loan disbursements and repayments, salary payments, and intra-account transfers within and between banks for the same customer, are exempt from the levy. Also excluded are inter-branch transfers within a bank, cheque clearing and settlements, letters of credit, recapitalization-related funding, and savings and deposit transactions involving long-term investments.
As banks gear up for the levy’s implementation, stakeholders will closely monitor its impact on electronic transactions and cybersecurity measures. Compliance with regulatory directives remains crucial as the banking sector navigates evolving cybersecurity challenges.
