The Central Bank of Nigeria, known as CBN, has instructed a small deduction of 0.005 percent as a Cybersecurity Levy on electronic transfers. This instruction came through a circular issued by the CBN yesterday, stating that the deductions will start within the next two weeks. The circular, signed by Uzoma Efobi, the Director of Payment Services, was sent to all banks and payment services operators in the country. According to the CBN, these deductions will be taken right at the start of the transaction, pooled together, and deposited into the Cybersecurity Fund held by the CBN. The apex bank also cautioned that any institution failing to comply could face a fine of not less than two percent of its yearly turnover. However, interbank transfers and loan transactions are exempt from this cybersecurity levy.
Regarding the Act, The circular serves as a follow-up to earlier letters dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), concerning compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. It highlighted that with the enactment of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, a levy of 0.5 percent (0.005), equivalent to half a percent of the value of all electronic transactions by specified businesses in the Second Schedule of the Act, must be remitted to the National Cybersecurity Fund. This fund is to be managed by the Office of the National Security Adviser. Additionally, the CBN emphasized that the deducted amount will be shown in the customer’s account with the note ‘Cybersecurity Levy.’
Meanwhile, just a week ago, the Federal Government introduced another deduction called ‘Stamp Duty.’ Deposit Money Banks must now deduct a 0.375 percent stamp duty charge on all mortgage-backed loans and bonds.
