Cybersecurity Levy: Banks to Charge Customers 0.5% on Electronic Transfers
The Central Bank of Nigeria, CBN, has directed 0.5 percent Cybersecurity Levy deductions on electronic transactions value, according to a circular to local deposit money banks (DMBs).
According to the apex bank, the deductions would become effective from the next two weeks, according to the circular signed by Director of Payment Services, Uzoma Efobi, addressed to all banks and payments services operators in the country
Details explained that the deductions would be applied at the transaction origination. They will be put together and paid into the Cybersecurity Fund held by the CBN.
The apex bank warned that a defaulting institution could be fined to the tune of not less than two (2) percent of its annual turnover. On the exclusion list are interbank transfers and loans transactions.
The apex bank also said salary payments are exempted from the charges. In the schedule of exemption lists, banks are not expected to deduct cyber levy on letter of credits, cheques clearing and settlements and interbank placements.
Other transactions excluded from the list are: Banks transfer to CBN and vice versa, savings and deposits including transactions for involving long term investment such as treasury bills, bonds and commercial papers.
Pension payments are not expected to be subjected to the levy, according to schedule of exemption lists posted on the CBN website. Donations to registered non-profitable organisations.
According to CBN, the circular was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
It noted that “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 a half per cent 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.”