Banks Set To Charge Customers 0.5% Cybersecurity Levy On Electronic Transfers

Names Of Forex Policy Defaulters Will Be Published, Banks Tell Customers
Names Of Forex Policy Defaulters Will Be Published, Banks Tell Customers

As per a circular sent to local deposit money banks (DMBs), the Central Bank of Nigeria (CBN) has mandated a 0.5 percent deduction on the value of electronic transactions towards the Cybersecurity Levy. 

The apex bank stated in a circular written to all banks and payment service providers in the nation and signed by Director of Payment Services Uzoma Efobi that the deductions will take effect in the next two weeks. Information clarified that the deductions will be made at the point of transaction initiation. They will be combined and deposited into the CBN’s Cybersecurity Fund.

The top bank issued a warning, stating that an institution in default may face fines equal to at least two percent of its yearly revenue. The list of items excluded includes interbank transactions and oans transactions. The apex bank also said salary payments are exempted from the charges.

In the schedule of exemption lists, banks are not expected to deduct cyber levy on letter of credits, cheques clearing and settlements and interbank placements.

Other transactions excluded from the list are: Banks transfer to CBN and vice versa, savings and deposits including transactions for involving long term investment such as treasury bills, bonds and commercial papers. Pension payments are not expected to be subjected to the levy, according to schedule of exemption lists posted on the CBN website. Donations to registered non-profitable organisations.

According to CBN, the circular was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

It noted that “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 which shall be administered by the Office of the National Security Adviser.” 

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