Nigerians to Pay 0.5% Cybersecurity Levy on Electronic Transfers

By Aduragbemi Omiyale

From May 20, 2024, Nigerians may have to pay a 0.5 per cent cybersecurity levy on electronic transfers as stipulated in the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.

On Monday, May 6, 2024, the Central Bank of Nigeria (CBN) in a circular directed all financial institutions, including commercial banks and others to deduct the fee on their service charge on electronic transfers through their platforms.

The 0.5 per cent cuybersecurity levy will taken from the service charge of the financial institution from the originator of the transaction.

However, the fee will not applicable on loan repayments, salary payments and others.

In the circular signed by the Director of Payments System Management Department of the CBN, Chibuzo Efobi; and the Director of Financial Policy and Regulation Department, Haruna Mustafa, the banks are mandated to remitt the monies to the National Cybersecurity Fund (NCF), which would be administered by the Office of the National Security Adviser (ONSA).

It emphasised that failure to remit the fees as is an offence as stated in Section 44 (8) of the Act and will attract a conviction of not less than 2 per cent of the annual turnover of the defaulting business, amongst others.

“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,” a part of the notice said.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.

“The deducted amount shall be reflected in the customer’s amount with the narration: cybersecurity levy.

“Deduction shall commence within two 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.

“System reconfiguration towards ensuring complete and timely submission of the remittance flies to the Nigeria Interbank Settlement System (NIBSS) Plc shall be completed within four weeks of this circular for commercial, merchant, non-interest and Payment Service Banks (PSBs) and mobile money operators, and within eight weeks for all Other Financial Institutions like Microfinance Banks, Primary Mortgage Banks, and Development Finance Institutions,” the circular further said.