The Central Bank of Nigeria (CBN) has directed the implementation of 0.5%cybersecurity levy for every electronic transactions in deposit money banks in the country to curb rising cybercrime threats.
In a circular released by the apex bank to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.
The Central Bank said, following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2) (a) of the Act, ‘a levy of 0.5% (0.005) equivalent to a half percent 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), the circular partly read.
This, the apex bank said would take effects in two weeks from the date of the circular.
The Central Bank noted that 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’.
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 circular added.
Accordingly, all banks, other financial institutions and payments service providers are required to implement the new provision of the Act as directed.
However, the circular exempted some transactions from cybercrime levy which includes; loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank.
Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, banks transfers to CBN, banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments such as treasury bills, bonds; and commercial papers; government social welfare programmes transactions e.g. pension payments; non-profit and charitable transactions including donations to registered non- profit organisations or charities; educational institutions transactions, including tuition payments and other transaction involving schools, universities, or other educational institutions.
The apex bank further directed that system reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) shall be completed within four weeks of the circular for commercial, merchant, non- interest and Payment Service Banks; and Mobile Money Operators.
Also, other financial institutions; Microfinance banks, Primary Mortgage banks, Development Finance Institutions) will be required to effect the completion within eight weeks of the circular.
The apex bank recently stopped fintechs firms like Opay and Palmpay from onboarding new customers and directed banks to deduct 0.375 per cent stamp duty charge on all mortgaged-backed loans and bonds.
