Bank, Other Financial Institutions' Customers To Be Charged 0.5% Cybersecurity Levy

THE Central Bank of Nigeria (CBN) has directed deposit money banks and some other financial institutions in the country to start charging a 0.5% cybersecurity levy on some transactions done by their customers.

The apex bank gave the directive in a circular dated 6 May 2024 and sent to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.

“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.

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’. Deductions shall commence within two 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 fifth business day of every subsequent month,” the circular said.

The apex bank added that this new levy will not be applied to transactions such as loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank.

Also exempted from the levy are inter-branch transfers within a bank, cheque clearing and settlements, ⁠Letters of Credits, ⁠Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments, among others.

The CBN, in recent times, has been making an effort to sanitise the financial sector. It recently issued a directive which barred fintechs from onboarding new customers.

The fintechs have in turn warned their customers against engaging in crypto transactions on their platforms.

This also comes barely a week after the Federal Government had directed Deposit Money Banks to immediately begin the deduction of 0.375 per cent stamp duty charge on all mortgaged-backed loans and bonds.

See Breakdown Of Cost Of Electronic Transactions In Nigeria

Cybersecurity Levy: Senders now bear….

₦5 on ₦1,000

₦50 on ₦10,000

₦500 on ₦100,000

₦5,000 on ₦1,000,000

₦50,000 on ₦10,000,000

Stamp Duty: Receivers bear….

₦50 on ₦10,000

₦50 on ₦100,000

₦50 on ₦1,000,000

₦50 on ₦10,000,000