The Central Bank of Nigeria (CBN) has instructed banks and financial institutions to impose a 0.5 per cent cybersecurity levy on electronic transfers as part of efforts to combat cyber threats and enhance the security of online transactions.
The directive contained in a circular signed by CBN officials Chibuzor Efobi, Director of Payments System Management and Haruna Mustafa, Director of Financial Policy and Regulation on Monday was issued to commercial, merchant, non-interest and payment service banks, as well as mobile money operators.
CBN said the policy would take effect in two weeks and charges would be described as ‘Cybersecurity Levy’.
“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”
“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% (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),” CBN said.
All banks, financial institutions, and payment service providers must implement the levy at the origin of electronic transfers. The deducted amount should be clearly shown in customers’ accounts with the designation ‘Cybersecurity Levy.’
Certain transactions like loan disbursements, salary payments, and inter-bank transfers are exempt from the levy to support essential financial operations. Also exempted from the levy were 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.
