The Central Bank of Nigeria (CBN) has issued a directive mandating banks and financial institutions in the country to implement a cybersecurity levy on electronic transactions, effective immediately.
In a circular released on Monday, the apex bank revealed that the levy, set at 0.5 per cent (0.005) of all electronic transaction values, is to be remitted to the National Cybersecurity Fund administered by the Office of the National Security Adviser. This move follows the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and is in compliance with previous directives related to cybersecurity legislation.
According to the CBN, the levy will be applied at the point of electronic transfer origination and deducted by financial institutions, with the deducted amount reflected in customers’ accounts labeled as ‘Cybersecurity Levy’. Deductions are set to commence within two weeks from the issuance of the circular, with monthly remittances to the NCF account required by the fifth business day of each subsequent month.
However, certain transactions are exempted from the levy, including loan disbursements and repayments, salary payments, intra-bank transfers, and specific banking operations such as cheque clearing and settlements.
This directive is part of the CBN’s ongoing efforts to enhance cybersecurity measures in the financial sector. It comes on the heels of other regulatory actions, such as barring fintechs from onboarding new customers and warning against cryptocurrency transactions on their platforms.
This latest levy imposition follows closely after the Federal Government’s directive for Deposit Money Banks to begin deducting a stamp duty charge on all mortgage-backed loans and bonds, reflecting a broader trend of regulatory adjustments aimed at ensuring financial transparency and security in Nigeria.