The Central Bank of Nigeria (CBN) has issued a directive to deposit money banks and other financial institutions in the country to commence charging a 0.5% cybersecurity levy on electronic transactions. 

This directive, contained in a circular dated May 6, 2024, applies to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers.

According to the circular, the levy is in accordance with the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024, specifically Section 44 (2) (a) of the Act. The levy of 0.5% of the value of all electronic transactions conducted by businesses specified in the Second Schedule of the Act is to be remitted to the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA).

The implementation of the levy is slated to commence two weeks from the date of the circular. 

Financial institutions are instructed to apply the levy at the point of electronic transfer origination, deduct the amount, and remit it to the NCF account domiciled at the CBN. The deducted amount will be reflected in the customer’s account with the narration “Cybersecurity Levy.”

Deductions are to begin within two weeks from the date of the circular, with the monthly remittance of collected levies in bulk to the NCF account by the fifth business day of every subsequent month.

However, certain transactions are exempted from the levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, and banks’ recapitalization-related funding, among others.