The Central Bank of Nigeria (CBN) has given a new directive for a 0.005 percent Cybersecurity Levy deduction on electronic transfers.
In a circular released on Monday, the CBN specified that these deductions would take effect within the next two weeks.
The circular, signed by the Director of Payment Services, Uzoma Efobi, was addressed to all banks and payment services operators in the country.
According to the CBN, these deductions will be applied at the transaction origination and will be accumulated and remitted into the Cybersecurity Fund held by the CBN.
The apex bank also cautioned that institutions failing to comply could face fines amounting to not less than two (2) percent of their annual turnover.
However, interbank transfers and loan transactions are exempted from the CBN cybersecurity levy.
This directive follows up on earlier communications dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), regarding compliance with the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
The circular stated, “Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005), equivalent to half a percent of all electronic transactions’ value by the businesses 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.”
The CBN further clarified that “The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”
