The Central Bank of Nigeria (CBN) has mandated a 0.005 percent Cybersecurity Levy on electronic transfers. This move, aimed at bolstering cybersecurity measures in the country, will take effect within the next two weeks.
The circular, issued by the Director of Payment Services, Uzoma Efobi, was distributed to all banks and payment services operators nationwide. According to the CBN, the levy will be applied at the transaction origination point and the collected funds will be deposited into the Cybersecurity Fund managed by the CBN.
The apex bank has emphasized the importance of compliance, warning that institutions failing to adhere to the directive could face fines of not less than two percent of their annual turnover. However, interbank transfers and loan transactions have been exempted from the cybersecurity levy.
This directive follows earlier communications dated June 25, 2018, and October 5, 2018, regarding compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. With the recent amendment to the Act in 2024, Section 44 (2)(a) now mandates the levy, equivalent to 0.5 percent, on all electronic transactions specified in the Second Schedule of the Act.
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CBN has clarified that the deducted amount will be clearly labeled as “Cybersecurity Levy” in customers’ account statements.
In addition to the cybersecurity levy, the Federal Government has also implemented a Stamp Duty charge. Deposit Money Banks are now required to deduct a 0.375 percent stamp duty charge on all mortgage-backed loans and bonds.
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