The Central Bank of Nigeria (CBN) has instructed deposit money banks in the country to implement a 0.5% cybersecurity levy on transactions.
In a circular dated May 6, 2024, the apex bank directed all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers, to comply with the directive.
According to the circular, the levy, equivalent to half a percent 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).
Implementation of the levy is set to commence two weeks from the circular’s date, with deductions to be made at the point of electronic transfer origination. The deducted amount will be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.
Furthermore, financial institutions are required to remit the collected levies in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.
Transactions exempted from the levy include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, inter-branch transfers within a bank, among others.
The CBN’s recent directives, including halting fintechs like Opay and Palmpay from onboarding new customers and instructing banks to deduct stamp duty charges on mortgaged-backed loans and bonds, demonstrate its ongoing efforts to enhance financial regulation and cybersecurity.