CBN orders Nigerian banks and fintechs to charge 0.5% cybersecurity levy on all transactions
The Central Bank of Nigeria 9CBN) has directed banks as well as fintechs to charge 0.5% cybersecurity levy on transactions.
This is announced in a circular issued issued addressed to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers on Monday, May 6, 2024.
According to the circular, the levy is in line with the provisions of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.
The circular revealed that it was a follow-up on an 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.
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 CBN said that all banks, financial institutions and payment service providers are now required to implement the directive.
“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 said.
“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.”
Speaking on penalties for non-compliance, the bank said that failure to remit the levy is an offence and is liable on conviction to a fine of not less than two per cent of the annual turnover of the defaulting business, amongst others.
