The Central Bank of Nigeria (CBN) has mandated banks across the country to introduce a cybersecurity levy on transactions, according to a circular issued by the apex bank on Monday. The implementation of this levy is set to commence two weeks from the date of the circular.
The directive, addressed to all commercial, merchant, non-interest, and payment service banks, follows earlier correspondence dated June 25, 2018, and October 5, 2018, concerning compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. The recent engagements by the Office of the National Security Adviser on cybersecurity were also cited as influencing factors.
As regards the enactment of the Cybercrime (Prohibition,…) (amendment) Act 2024, the CBN, under the provision of Section 44 (2)(a) of the Act, has stipulated a levy of 0.5 per cent (0.005) on all electronic transaction values by specified businesses. This proceeds from the levy would be remitted to the National Cybersecurity Fund, which is administered by the Office of the National Security Adviser.
All banks, financial institutions, and payment service providers are now required to adhere to this directive. The levy will be implemented at the point of electronic transfer origination and will be deducted and remitted by the financial institution. The deducted amount will be reflected in the customer’s account with the label, ‘Cybersecurity Levy’.
Deductions are scheduled to commence within two weeks from the date of the circular, with monthly remittances of the collected levies to the NCF account domiciled at the CBN by the fifth business day of each subsequent month.
Certain transactions are exempted from the levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, among others.
This directive from the CBN comes amidst ongoing efforts to enhance the integrity of the financial sector, including recent measures such as barring fintechs from onboarding new customers. Fintechs, in response, have cautioned their customers against engaging in cryptocurrency transactions on their platforms.
Additionally, this development follows closely on the heels of the Federal Government’s directive to Deposit Money Banks to begin the deduction of a 0.375 per cent stamp duty charge on all mortgage-backed loans and bonds.
