In a bid to enhance cybersecurity measures, the Central Bank of Nigeria (CBN) has issued a directive to deposit money banks, mobile money operators, and payment service providers to charge a 0.5% levy on electronic transactions. This directive, outlined in a circular dated May 6, 2024, aims to support the National Cybersecurity Fund (NCF) established under the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
The levy, equivalent to half a percent of the value of all electronic transactions specified in the Act, will be remitted to the NCF administered by the Office of the National Security Adviser (ONSA).
Implementation of the levy will commence two weeks from the date of the circular. Financial institutions are instructed to apply the levy at the point of electronic transfer origination, with the deducted amount reflected in customers’ accounts labeled as “Cybersecurity Levy.”
Deductions will begin within two weeks from the circular’s issuance, with monthly remittances of collected levies to the NCF account domiciled at the CBN by the fifth business day of subsequent months.
Certain transactions are exempted from the levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and others such as inter-branch transfers within a bank and cheque clearing and settlements.
This directive follows recent regulatory actions by the CBN, including halting the onboarding of new customers by fintech firms like Opay and Palmpay, and mandating banks to deduct a stamp duty charge on mortgaged-backed loans and bonds.
