Central Bank Of Nigeria Directs Financial Institutions To Implement 0.5% Cybersecurity Levy on Transactions – Tech Labari

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The Central Bank of Nigeria (CBN) has directed banks to charge a 0.5% cybersecurity levy on their transactions.

Details

The directive was issued by the CBN on 6th May 2024 which stated that the implementation of the levy should begin two weeks from the day of its announcement.

The directive was issued to all commercial, merchant, non-interest, and payment service banks.

Digging Deeper

This directive follows the enactment of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act which places a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business.

What They’re Saying

“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 CBN stated.

Deductions shall commence within two 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 fifth business day of every subsequent month.”

The CBN stated that failure to remit the levy is an offense and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business.

Source: Premium Times Nigeria


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