CBN asks Nigerian banks to charge 0.5% cybersecurity levy on all transactions

The Central Bank of Nigeria has instructed Nigerian banks to implement a 0.5% cybersecurity levy on all transactions

Amid the prevailing challenges in Nigeria, deposit money banks across the country will now implement a 0.5% cybersecurity levy on transactions, as announced in a circular issued by the Central Bank of Nigeria (CBN) dated May 6, 2024.

According to the circular addressed to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers, the levy is in line with the provisions of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.

“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to 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),” the circular partly read.

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The apex bank said that the implementation of the levy would start two weeks from the date of the circular.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”