Banking
EXPLAINER: Understanding CBN’s 0.5% Cybersecurity Levy
By Adedapo Adesanya
On Monday, May 6, 2024, the Central Bank of Nigeria (CBN) directed all financial institutions, including commercial banks and others to deduct a 0.5 per cent cybersecurity levy on electronic transfers as stipulated in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
The directive has since created an uproar among Nigerians as they interpreted it to be that the 0.5 per cent fee would be charged on the value of the funds transferred electronically. For instance, a sum of N1,000 will attract N5, N2,000 to attract N10, N5,000 to attract N50, and so on.
But from the explanation given by the CBN in 2018 when this policy was first implemented, the cybersecurity fee is levied on the service charge by the financial institutions from the originator of the transaction.
For example, if the service charge on the transfer of N10,000 is N50, the 0.5 per cent cybersecurity levy will be charged on the N50, not N10,000, which means apart from paying N50 for Electronic Money Transfer Levy (EMTL), 7.5 per cent Value-Added Tax (VAT), and other fees, the customer will likely pay 25 Kobo as an additional fee for the transaction.
This development is not new. The Cybersecurity Act was first passed in 2015 and introduced a 0.005 per cent levy on electronic transfers. In June 2018, the CBN implemented the policy and directed banks to collect the levy on “electronic transactions occurring in a bank or on a mobile money scheme or any other payment platform that have an accompanying service charge.”
It was explained in 2018 through Mr Dipo Fatokun, who was then the Director Banking and Payments System Department, that “Electronic transactions shall be all financial transactions occurring in the bank or on a Mobile Money Scheme or any other payment platform that have an accompanying service charge; the levy shall be 0.005 per cent of the service charge (exclusive of all tax effects) from all electronic financial transactions occurring in a bank, a Mobile Money Scheme and other Payment Platforms.
“All electronic transactions (both inter and intra) that have an accompanying service charge shall qualify as eligible transactions; the effective date of collection shall be with effect from July 1, 2018.”
Now, the levy has been increased by 900 per cent and covers fintechs, payment service providers, and other financial institutions. These institutions have been mandated to remit the monies to the National Cybersecurity Fund (NCF), which would be administered by the Office of the National Security Adviser (ONSA).
In the latest circular signed by the Director of the Payments System Management Department of the CBN, Mr Chibuzo Efobi; and the Director of the Financial Policy and Regulation Department, Mr Haruna Mustafa, the apex bank emphasised that failure to remit the fees 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 per cent 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.
While the outbursts have continued, many have also justified the need for the charge, especially with fraud prevalent in the Nigerian financial ecosystem.
Available data released by the Financial Institutions Training Centre (FITC) showed that Nigerian banks lost N2.09 billion to frauds in the fourth quarter of 2023, with mobile emerging as the top channel through which the largest amount was lost.
According to the report, the N2.09 billion loss recorded in Q4 was a 77.58 per cent increase from the N1.18 billion recorded by the banks in Q3 2024.
There are also indicators that the number might be higher this year, with the CBN forcing the hands of neobanks like Opay, MoniePoint, PalmPay, and Kuda not to open new accounts.
Despite this new fund, it is not all gloomy as 16 banking transactions are exempted from the CBN’s new cybersecurity levy.
These are Loan disbursements and repayments; Salary payments; Intra-account transfers within the same bank or between different banks for the same customer; Intra-bank transfers between customers of the same bank, Other Financial Institutions’ instructions to their correspondent banks; Interbank placements; Banks’ transfers to CBN and vice-versa; Inter-branch transfers within a bank; and Cheque clearing and settlements.
Others are Letters of Credit; Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts; Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers; Government Social Welfare Programmes transactions e.g. Pension payments; Non-profit and charitable transactions, including donations to registered non-profit organisations or charities; Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions; as well as transactions involving the bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
By Dipo Olowookere
Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.
The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.
The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.
Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.
It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.
“Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.
“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.
“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.
“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.
The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.
Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.
By Dipo Olowookere
Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.
In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.
It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.
All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.
Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.
They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.
“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.
“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.
“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.
Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”
By Dipo Olowookere
Customers may have difficulty accessing the digital platform of Polaris Bank, known as VULTe, during the Easter holidays from Friday, April 3, to Monday, April 6, 2026.
This is because the financial institution is carrying out system maintenance on the platform in its effort to ensure users enjoy a better banking experience.
In a notice over the weekend, the lender said “access to VULTe may be limited,” but it provided an alternative, which is the PolarisXperience.
Polaris Bank, which expressed regret over “any inconvenience” this action may cause its customers, said the “scheduled system maintenance” would happen from 10 pm to 8 am daily, promising that normal service would return after the maintenance.
“In continuation of our commitment to delivering a seamless and improved banking experience, we will be conducting a scheduled system maintenance during the Easter holidays.
“During this period, access to VULTe may be limited. We have provided an alternative channel, PolarisXperience:
“Please go to our website to onboard or use it as an existing user. You can also use this link: (https://elogin.polarisbanklimited.com).
“We regret any inconvenience and appreciate your understanding. Normal service will resume after the maintenance,” parts of the notice seen by Business Post read.
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