On Monday, the Central Bank of Nigeria issued a directive instructing banks and other financial institutions to initiate a cybersecurity levy on all banking transactions, as reported by Saving Point Media.
The implementation of this levy is set to commence in two weeks, according to the circular.
Outlined below are key points about the cybersecurity levy based on the CBN circular:
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- A new levy of 0.5%, equivalent to half a percent, will be applied to electronic transactions as mandated by the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.
- The levy is to be paid by the originator of the electronic transaction and deducted by the financial institution. The deducted amount will be reflected in the customer’s account with the narration: “Cybersecurity Levy.”
- Financial institutions are tasked with deducting the levy and remitting it to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.
- Deductions are scheduled to commence within two weeks from the date of the circular, May 6. Financial institutions must remit collected levies in bulk to the NCF account domiciled at the CBN monthly by the fifth business day of the following month.
- Financial institutions are required to update their systems to facilitate levy deduction and remittance. Failure to remit the levy can lead to penalties, including a fine of up to 2% of a financial institution’s annual turnover.
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