The Central Bank of Nigeria (CBN) has instructed deposit money banks in the country to levy a 0.5% cybersecurity fee on certain customer transactions. This directive, outlined in a circular dated May 6, 2024, applies to commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers.
“In accordance with the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024, and Section 44 (2) (a) of the Act, a levy of 0.5% (0.005), equivalent to half a percent of all electronic transaction values specified in the Second Schedule of the Act, must be remitted to the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA),” the circular stated.
Implementation of the levy will commence two weeks from the circular’s date, applied at the initiation of electronic transfers and reflected as ‘Cybersecurity Levy’ in customer accounts. Deductions will start within two weeks for all financial institutions, with monthly remittances to the NCF account at the CBN by the fifth business day of each subsequent month.
Exempted from the levy are transactions such as loan disbursements and repayments, salary payments, intra-bank transfers, inter-branch transfers, cheque clearing, and settlements, among others.