The Central Bank of Nigeria has yesterday directed commercial banks to commence charging 0.5% cybersecurity levy on all customer transactions conducted in their banks. This was released in a circular by the apex bank yesterday Monday saying the implementation of the said levy would take effect two weeks from yesterday when the circular was released. Accordingly, the circular was directed to all commercial, merchant, non-interest and payment service banks across the country.
The CBN claimed that the circular was a follow-up on its earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), in compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
The letter reads; 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 per cent (0.005) equivalent to a half per cent 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 which the Office of the National Security Adviser shall administer.
The apex bank explained that by the virtue of the circular, all commercial banks, financial institutions and payment service providers are required to comply.
The statement said, “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’,”
It added, “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.”
The CBN warned that failure to comply with this directive by the listed institutions to remit the levy to the apex bank will attract stiffer sanction which may include fine upon prosecution of not less than two per cent of the annual defaulting institution turn over.
