Any electronic transfer gets ‘Cybersecurity Levy’ deductions – CBN

On electronic transfers, the Central Bank of Nigeria, or CBN, has mandated deductions of 0.005 percent for the Cybersecurity Levy.

The CBN said in a circular yesterday that the deductions would take effect in the upcoming two weeks.

All banks and providers of payment services in the nation received the circular, which was released by Uzoma Efobi, Director of Payment Services.

The CBN states that the deductions must be made at the time the transaction is initiated.

They will be combined and deposited into the CBN’s Cybersecurity Fund.

The apex bank issued a warning, stating that an institution in default might face fines equal to at least two percent of its yearly revenue.

Loan transactions and interbank transfers, however, were excluded from the CBN cybersecurity levy.

The Act

The circular 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), on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

It noted that “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 a 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 shall be administered by the Office of the National Security Adviser.”

Also, CBN stressed that “The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”

Meanwhile, just barely a week ago, the Federal Government implemented deduction of ‘Stamp Duty’.

Deposit Money Banks are to begin the deduction of 0.375 per cent stamp duty charge on all mortgaged-backed loans and bonds.