November 8, 2024

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CBN Directs Financial Institution To Charge 0.5% Cybersecurity Levy On Electronic Transfers

The Central Bank Of Nigeria has asked all banks and other financial institutions to charge a total of 0.5% cybersecurity levy on electronic transfers.

This was made known by a circular signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation on Monday. The instruction was given to commercial, merchant, non-interest and payment service banks, as well as mobile money operators.

According to the cybersecurity levy would take effect in two weeks and the  the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.

CBN said;

“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 also revealed that failure to to remit the levy is an offence which attracts a fine of not less than 2 percent of the annual turnover of the defaulting business, amongst others.