In a bid to fortify cybersecurity measures within Nigeria’s financial sector, the Central Bank of Nigeria (CBN) has issued a directive requiring all banks to implement a 0.5% cybersecurity levy on electronic transactions.
The directive, conveyed through a circular signed by Chibuzo Efobi, Director of the Payments System Management Department, and Haruna Mustafa, Director of the Financial Policy and Regulation Department, was distributed to all commercial, merchant, non-interest, and payment service banks.
Effective two weeks from the date of issuance on Monday, May 6, 2024, the levy is to be applied at the origination point of electronic transfers. Financial institutions are mandated to deduct and remit the levy, which will be reflected in customers’ accounts with the description, ‘Cybersecurity Levy.’
Despite the implementation of the levy, the CBN has delineated 16 categories of banking transactions that will be exempted from the levy:
- Loan Disbursements and Repayments
- Salary Payments
- Intra-account Transfers
- Intra-bank Transfers
- Other Financial Institutions
- Interbank Placements
- Banks’ Transfers to CBN and Vice-Versa
- Inter-branch Transfers
- Cheque Clearing and Settlements
- Letters of Credits
- Banks’ Recapitalisation-Related Funding
- Savings and Deposits
- Government Social Welfare Programmes
- Non-profit and Charitable Transactions
- Educational Institutions’ Transactions
- Transactions involving Bank’s Internal Accounts
These exemptions encompass a wide array of financial activities including loan operations, salary disbursements, interbank transactions, government welfare programs, and educational payments, among others.
The introduction of the cybersecurity levy underscores the CBN’s commitment to enhancing cybersecurity resilience in Nigeria’s financial ecosystem amid increasing digital transactions and cyber threats.
