The Central Bank of Nigeria, CBN, on Monday, May 6, directed banks and other financial institutions to start charging a cybersecurity levy on all bank
The Central Bank of Nigeria, CBN, on Monday, May 6, directed banks and other financial institutions to start charging a cybersecurity levy on all banking transactions.
In the circular, the implementation of the levy would start in two weeks.
The circular read in part, “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, which shall be administered by the Office of the National Security Adviser.”
Below are things to know about the cybersecurity levy to be paid by Nigerians, in the CBN circular:
1. A new levy of 0.5 percent, equivalent to half a percent, is now applied to electronic transactions as mandated by the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act of 2024.
2. The levy is paid by the initiator of the electronic transaction and deducted by the financial institution. The deducted amount will then be reflected in the customer’s account, with the description “Cybersecurity Levy.”
3. Financial institutions are tasked with deducting the levy from electronic transactions and remitting it to the National Cybersecurity Fund, which is administered by the Office of the National Security Adviser.
4. Deductions are scheduled to commence within two weeks from the issuance of the circular, dated May 6, as financial institutions are required to remit the collected levies in bulk to the National Cybersecurity Fund account, which is domiciled at the CBN, on a monthly basis by the fifth business day of the subsequent month.
5. Financial institutions are mandated to update their systems promptly to facilitate levy deductions and remittances. Failure to comply with the remittance requirements may lead to penalties, including fines of up to 2 percent of the financial institution’s annual turnover.
