The Central Bank of Nigeria (CBN) has ordered banks in the country to begin imposing a cybersecurity fee on transactions.
According to a circular issued by the apex bank on Monday, the levy will begin two weeks from today.
The circular was aimed at all commercial, merchant, non-interest, and payment service banks, among others.
The circular stated that it was a follow-up to previous letters dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023) about compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
Following the enactment of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, and in accordance with Section 44 (2)(a) of the Act, a levy of 0.5 percent (0.005), equivalent to half of the value of all electronic transactions by the businesses specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund, which will be administered by the Office of the National Security Adviser.
According to the Central Bank of Nigeria, CBN, all banks, other financial institutions, and payment service providers are now required to follow the directive, saying, “The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.
“Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.”
Loan disbursements and repayments, salary payments, intra-account transfers within or between banks for the same client, and intra-bank transfers between customers of the same bank are all exempt from the charge.
Exemptions from the levy include inter-branch transfers within a bank, check clearing and settlements, letters of credit, and bulk fund movements from collection accounts, savings, and deposits, including long-term investments.
The CBN has recently attempted to cleanse the financial industry. It recently issued a guideline preventing fintechs from enrolling new consumers.
Fintechs have urged their consumers not to conduct cryptocurrency transactions on their platforms.
This comes just a week after the Federal Government authorised Deposit Money Banks to immediately begin deducting the 0.375 percent stamp duty fee on all mortgage-backed loans and bonds.
