The Central Bank of Nigeria (CBN), on Monday, directed a 0.005 percent Cybersecurity Levy deductions on electronic transfers.
A circular issued by the CBN’s Director of Payment Services, Uzoma Efobi, stated that the deductions would become effective in two weeks.
According to the statement, the deduction and collection of the cyber security levy is sequel to the enactment of the 2024 cyber crime (prohibition, prevention etc) amendment Act of 2024 which provides for a 0.5% deduction of the value of all electronic transactions to the “National Cyber Security Fund which would be administered by the office of the National Security Adviser.”
Addressed to all banks and payments services operators in the country, the apex bank noted that the deductions shall be applied at the transaction origination.
They will be put together and paid into the Cybersecurity Fund held by the CBN, it added.
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.
However, interbank transfers and loans transactions were exemted from the CBN cybersecurity levy.
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Also, CBN stressed that “The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”
See below 16 banking transactions that are exempted from the CBN’s new cybersecurity levy:
1. Loan disbursements and repayments.
2. Salary payments.
3. Intra-account transfers within the same bank or between different banks for the same customer.
4. Intra-bank transfers between customers of the same bank.
5. Other Financial Institutions instructions to their correspondent banks.
6. Interbank placements.
7. Banks’ transfers to CBN and vice-versa.
8. Inter-branch transfers within a bank.
9. Cheque clearing and settlements.
10. Letters of Credits.
11. Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts.
12. Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
13. Government Social Welfare Programmes transactions e.g. Pension payments.
14. Non-profit and charitable transactions, including donations to registered non-profit organisations or charities.
15. Educational institutions’ transactions, including tuition. payments and other transactions involving schools, universities, or other educational institutions.
16. Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
