The cybersecurity levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.
On Monday, the Central Bank of Nigeria directed banks to charge a 0.5% cybersecurity levy on transactions.
A circular released by the Apex Bank said the levy implementation would begin two weeks from Monday, 6th of May, 20th May, 2024.
The circular was directed to all commercial, merchant, non-interest and payment service banks.
The circular revealed that it 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), in compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
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 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 the Office of the National Security Adviser shall administer.
The CBN said that all banks, financial institutions and payment service providers must implement the directive.
“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’,” it said.
“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.”
Speaking on penalties for non-compliance, the bank said that failure to remit the levy is an offence, and on conviction, the bank is liable to a fine of not less than two percent of the defaulting business’s annual turnover, among other things.
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