THE Central Bank of Nigeria (CBN) has directed banks and other financial institutions to implement a 0.5 per cent cybersecurity levy on electronic transfers.
The analysis of the charge showed that ₦5 will be charged on every ₦1,000 transferred; ₦50 on every ₦10,000; ₦500 on every ₦100,000; ₦5,000 on every ₦1,000,000; ₦50,000 on every ₦10,000,000; and ₦500,000 on every ₦100,000,000.
This is contained in a circular signed by Chibuzor Efobi, director of payments system management and director of financial policy and regulation, Haruna Mustafa, on Monday, May 6.
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The directive was issued to commercial, merchant, non-interest, and payment service banks and mobile money operators.
The CBN said the policy would take effect in two weeks, and charges would be described as a ‘Cybersecurity Levy’.
According to the apex bank, the deduction and collection of the cybersecurity levy follow the enactment of the Cybercrime (prohibition, prevention, etc.) Amendment Act of 2024.
“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 (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” CBN said.
The CBN said the charges would be remitted to the National Cyber Security Fund, which would be administered by the office of the NSA.
“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 5th business day of every subsequent month.”
The CBN said failure to remit the levy is an offence that attracts a fine of not less than two per cent of the defaulting business’s annual turnover, among other penalties.
“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”
Meanwhile, banks had announced the reintroduction of a two per cent charge on deposits above N500,000.
The ICIR reports that this is not the first time the CBN has issued such a directive. In 2018, the apex bank issued the same and cited section 44(S,1 and 2)of the Cybersecurity Fund and mandated the payment of 0.0005 per cent into the CBN’s Trust Fund Account
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.