AGS NEWS – The Central Bank of Nigeria (CBN) has instructed banks in the country to implement a cybersecurity levy on transactions, according to a circular issued on Monday.

This levy, which will commence two weeks from now, applies to all commercial, merchant, non-interest, and payment service banks, among others.

ALSO READ: CBN justifies loan deposit ratio as inflation control measure

The directive stems from previous correspondences dated June 25, 2018, and October 5, 2018, regarding compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

The recent public engagements by the Office of the National Security Adviser on the same subject were also noted.

Under the Cybercrime (Prohibition, Prevention, etc.) (amendment) Act 2024, and as stipulated in Section 44(2)(a) of the Act, a levy of 0.5% (0.005) equivalent to half a percent of all electronic transactions’ value by specified businesses is to be remitted to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.

The CBN mandates all banks, financial institutions, and payment service providers to implement the directive.

The levy will be applied at the point of electronic transfer origination, deducted, and remitted by the financial institution.

Deductions will begin within two weeks, with monthly remittances collected in bulk to the NCF account domiciled at the CBN by the fifth business day of each subsequent month.

Transactions exempted from the levy include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, among others.

ALSO READ: CBN to host 294th MPC meeting on monday

This directive follows recent efforts by the CBN to regulate the financial sector, including barring fintechs from onboarding new customers and warning against crypto transactions on their platforms.

It comes shortly after the Federal Government directed Deposit Money Banks to immediately deduct a 0.375% stamp duty charge on all mortgaged-backed loans and bonds.