The Central Bank of Nigeria (CBN) has announced a new directive imposing a 0.5 percent Cybersecurity Levy on electronic transfers.
This will be effective within the next two weeks, will be deducted from electronic transactions and channeled into the Cybersecurity Fund held by the CBN.
In a circular addressed to all banks and payment services operators, the Director of Payment Services, Uzoma Efobi, emphasized that the levy will be applied at the origin of the transaction. Non-compliance could result in fines of not less than 2 percent of the defaulting institution’s annual turnover.
The CBN clarified that interbank transfers and loan transactions are exempted from the cybersecurity levy.
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This directive follows the enactment of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024. Under Section 44 (2)(a) of the Act, a levy of 0.5 percent (0.005), equivalent to half a percent of all electronic transaction values by specified businesses, will be remitted to the National Cybersecurity Fund. This fund will be administered by the Office of the National Security Adviser.
“The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’,” the CBN stressed.
Additionally, the Federal Government recently implemented the deduction of Stamp Duty. Deposit Money Banks will now begin deducting a 0.375 percent stamp duty charge on all mortgage-backed loans and bonds.
