Banks will start deducting cybersecurity levies on electronic transactions

The CBN says the deduction of the levy will begin within two weeks from the date of the circular.

The Federal Government has directed commercial banks and other financial institutions to start charging a cybersecurity levy on Nigerians’ banking transactions.

The apex bank announced this on Monday, May 6, 2024, in a circular signed by Chibuzor Efobi, Director of Payments System Management, and Haruna Mustafa, Director of Financial Policy and Regulation.

The circular, which was directed to all commercial, merchant, non-interest, and payment service banks stated that the implementation of the levy would start in two weeks.

“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, ‘a levy of 0.5% (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, which shall be administered by the Office of the National Security Adviser.” the circular read in part.

The apex bank said the deduction of the levy will begin within two weeks from the date of the circular for all financial institutions, adding that monthly remittance of the levies will be collected in bulk to the NCF account domiciled at the CBN.

“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,” the circular read.

What you should know about the new cybersecurity levy

• The new levy mandated by the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 applies to electronic transactions.
• The levy will be deducted from the account of the originator of the electronic transaction.
• The amount deducted from the account will be reflected in the customer’s account with the narration: “Cybersecurity Levy.”
• The money deducted from your account will be remitted to the National Cybersecurity Fund supervised by the Office of the National Security Adviser.
• This deduction is expected to start in two weeks.