The Central Bank of Nigeria (CBN) has issued a directive to all banks operating within the country. The directive mandates the implementation of a 0.5% cybersecurity levy on all electronic transactions, effective from May 6, 2024. However, there are 16 specific banking transactions that are exempted from this new levy.
Based on a circular signed by the Director of the Payments System Management Department, Chibuzo Efobi, and the Director of the Financial Policy and Regulation Department, Haruna Mustafa, the implementation of the cybersecurity levy is scheduled to begin two weeks from May 6, 2024
The cybersecurity levy will be applied at the point of electronic transfer origination. Financial institutions will deduct the levy and remit it to the appropriate authorities.
Customers will see the deducted amount reflected in their accounts with the narration, “Cybersecurity Levy.” The CBN has identified certain transactions that will not be subject to the cybersecurity levy. These include:
- Loan disbursements and repayments
- Salary payments
- Intra-account transfers within the same bank or between different banks for the same customer
- Intra-bank transfers between customers of the same bank
- Other Financial Institutions instructionsto their correspondent banks
- Interbank placements
- Banks’ transfers to CBN and vice-versa
- Inter-branch transfers within a bank
- Cheque clearing and settlements
- Letters of Credits
- Banks’ recapitalisation-related funding(only bulk funds movement from collection accounts)
- Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers
- Government Social Welfare Programmes transactions, e.g., Pension payments
- Non-profit and charitable transactions, including donations to registered non-profit organisations or charities
- Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
- Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
