The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions in the country to implement a 0.5 percent ‘cybersecurity levy’ on electronic transfers.
The directive was contained in a circular signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation on Monday.
This new order was sent to commercial, merchant, non-interest and payment service banks, as well as mobile money operators.
The Nigerian apex bank stated that the policy would take effect in two weeks and charges would be designated ‘Cybersecurity Levy’.
As stated by CBN, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” CBN said.
The apex bank said the charges would be remitted to the national cyber security fund, which would be administered by the Office of the National Security Adviser (ONSA).
“Deductions shall commence within two (2) weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month.”
Conclusively, CBN unequivocally stated that failure to remit the levy is an offence which attracts a fine of not less than 2 percent of the annual turnover of the defaulting business, amongst others.
“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”
Concurrently, banks had earlier announced the reintroduction of 2 percent charge on deposits above N500,000.