Bank Customers to Pay 0.5% Cybersecurity Levy on Electronic Transfers Within Two Weeks | #NwokeukwuMascot

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…Bank Customers Set to Initiate Payment of 0.5% Cybersecurity Levy on Electronic Transfers in Fortnight | #NwokeukwuMascot 

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In a move slated for the upcoming two weeks, bank customers will embark on the payment of a 0.5 per cent cybersecurity levy on all electronic transfers. This development stems from a directive issued by the Central Bank of Nigeria (CBN), instructing banks and other financial entities to enforce a 0.5 per cent cybersecurity levy on electronic transfers.

The directive was communicated through a circular signed by Chibuzor Efobi, Director of Payments System Management, and Haruna Mustafa, Director of Financial Policy and Regulation, on Monday. The directive was disseminated to various financial entities, including commercial, merchant, non-interest, and payment service banks, along with mobile money operators.

The apex bank outlined that this policy would come into effect in a fortnight, with the charges designated as 'Cybersecurity Levy.' This move aligns with the enactment of the Cybercrime (Prohibition, Prevention, etc.) Amendment Act of 2024, prompting the deduction and collection of the cybersecurity levy, as per the directive from the regulatory body.

The CBN said, “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 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).

“Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows

“Calculate the levy based on the total 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 5th business day of every subsequent month.”

The CBN further said the charges would be remitted to the national cyber security fund, which would be administered by the office of the NSA. failure to remit the levy is an offence which attracts a fine of not less than two percent of the annual turnover of the defaulting business, amongst others.