The Central Bank of Nigeria (CBN) has issued a directive to deposit money banks across the nation, compelling them to enforce a 0.5% cybersecurity levy on transactions, in adherence to the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.
In a circular released on May 6, 2024, the apex bank instructed all commercial, merchant, non-interest, and payment service banks, along with mobile money operators and payment service providers, to comply with the new levy.
Quoting the circular, it stated, “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 implementation of this levy is slated to commence within two weeks from the circular’s issuance date. Financial institutions are mandated to apply the levy at the point of electronic transfer origination, with deductions reflected in the customer’s account as ‘Cybersecurity Levy’.
While loan disbursements and repayments, salary payments, and certain other transactions are exempted from this levy, the CBN emphasized the monthly remittance of collected levies to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.
This development comes shortly after the CBN’s decision to halt fintechs firms like Opay and Palmpay from accepting new customers and to impose a 0.375% stamp duty charge on all mortgage-backed loans and bonds.
