The Central Bank of Nigeria (CBN) has issued a mandate for all deposit money banks to impose a cybersecurity levy of 0.5% on electronic transactions.
This directive, outlined in a circular dated May 6, 2024, applies to commercial, merchant, and non-interest banks, as well as mobile money operators and payment service providers.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to 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),” the circular partly read.
The levy, which is a result of the newly amended Cybercrime Act of 2024, requires businesses to contribute half a percent of the value of all electronic transactions to the National Cybersecurity Fund (NCF).
The NCF is managed by the Office of the National Security Adviser (ONSA).
“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’.
“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 circular added.
This move follows the CBN’s recent actions to halt new customer onboarding by fintech firms such as Opay and Palmpay and the imposition of a 0.375% stamp duty on all mortgage-backed loans and bonds.
