CBN Issues Circular On Cyber Security Levy, Asks Banks To Charge 5% On Electronics Transaction

The Central Bank of Nigeria (CBN) , has ordered banks and financial institutions to implement a 0.5 % cyber security Levy on electronic transactions within two weeks of notification.

This is contained in a circular issued on Monday and jointly signed by the director of payments system management and financial policy and regulation, Chibuzor Efobi and Haruna Mustafa.

CBN hinted that charges would be remitted to the national cyber security fund , which would be administered by the office of the NSA.

The apex bank warned that failure to remit the levy is an offence , and this attracts a fine of not less than 2 percent of the annual turnover of the defaulting business, amongst others .

According to the circular, the directive was issued to commercial, merchant, non- interest payment service banks and mobile money operators .

” The deduction and collection of the cyber security levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.

“Deductions shall commence within two (2) 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.”

“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”

Recall that banks had earlier announced the reintroduction of 2 percent charge on deposits above N500,000.