The Central Bank of Nigeria (CBN) has issued a directive instructing banks and various financial institutions to apply a 0.5 percent levy on electronic transfers for cybersecurity measures.

This mandate was communicated through a circular signed by Chibuzor Efobi, the director of payments system management, and Haruna Mustafa, the director of financial policy and regulation, on Monday.

The directive extends to commercial banks, merchant banks, non-interest banks, payment service banks, and mobile money operators.

According to the CBN, the new policy is slated to be implemented within two weeks, with the charges designated as ‘Cybersecurity Levy’.

As per the directive from the apex bank, the implementation of the cybersecurity levy stems from the ratification of the Cybercrime (Prohibition, Prevention, etc.) Amendment Act of 2024.

However, the Central Bank of Nigeria (CBN) has specified that the proceeds from these charges will be transferred to the national cybersecurity fund. This fund is set to be overseen by the office of the National Security Adviser (NSA).

READ ALSO:

Federal Government Requires for $10 Billion Annually to Revitalize Power Sector- Minister of Power.

Moreover, the CBN has underscored that failure to remit this levy constitutes an offense, subjecting defaulting entities to penalties. These penalties include fines amounting to not less than 2 percent of the annual turnover of the non-compliant business, among other repercussions.

The circular stated:

“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% (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).”

“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.”

“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”