CBN introduces cyber security levy

The Central Bank of Nigeria has introduced a cyber security levy, which is expected to commence in the next two weeks.  In a circular on Monday by the Director, of Payment Systems at the CBN, the collection is premised on the enactments of the cyber-Act.  The circular read: “The earlier Central Bank of Nigeria (CBN) […]

The Central Bank of Nigeria has introduced a cyber security levy, which is expected to commence in the next two weeks.

 In a circular on Monday by the Director, of Payment Systems at the CBN, the collection is premised on the enactments of the cyber-Act.

 The circular read: “The earlier Central Bank of Nigeria (CBN) circular and letter to all banks dated June 25, 2018 (Ref: BPS/DlR/GEN/ClR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023) respectively on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015 refer.

 “Also, 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 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).

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 “Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows and 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’,” the circular explained.

 The apex bank added that “Deductions shall commence within two (2) 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.”