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 Adedapo Adesanya
The operating licences of all legacy Bureau De Change (BDC) operators who failed to meet the new licensing requirements have been revoked by the Central Bank of Nigeria (CBN).
This happened after the central bank streamlined the BDCs to 82 in order to sanitise the foreign exchange (FX) market in the country.
The latest development was revealed by the apex bank in its Frequently Asked Questions document on the current reform of the bureau de change, published on its website on Tuesday.
According to the document, the CBN has now enforced the final cutoff, declaring that any BDC that did not meet the requirements by the end of November is no longer recognised.
“The guidelines provided a transition timeline of six months from the effective date, 3 June 2024, with a deadline of 3 December 2024, for all existing BDCs to meet the requirement of the new Guidelines or lose their licence(s). However, the management of the CBN graciously extended this deadline by another six months, which ended 3 June 2025, to give ample time for as many legacy BDCs desirous of meeting the new requirements to do so.
“Consequently, any legacy BDC that failed to meet the requirements of the new Guidelines as of 30 November 2025 has ceased to be a BDC, as its licence no longer exists. Please visit the CBN website for the updated list of existing BDCs in Nigeria,” the apex bank said.
According to the CBN, before its latest decision, an extended compliance window was granted under the revised BDC Guidelines. Existing operators were initially given six months, June 3 to December 3, 2024, to satisfy the new regulatory conditions.
The CBN later granted an additional six-month extension, which elapsed on June 3, 2025, to allow more operators to align with the updated standards.
The new measures form part of broader efforts by the CBN to strengthen transparency, compliance, and stability within Nigeria’s foreign exchange market.
The new CBN regulatory framework for BDCs, introduced in February 2024, mandated BDC operators to meet higher capital requirements. Tier-1 operators are required to meet a minimum capital requirement of N2bn, while Tier-2 operators must meet N500m as MCR.
The bank added that it would continue to receive applications on its Licensing, Approval and Requests Portal from prospective promoters, and those that meet the criteria will be considered for a license.
However, the CBN said it reserves the right to discontinue the licensing of BDCs at any time.
By Modupe Gbadeyanka
A non-bank credit card issuer, 03 Capital, has introduced a travel card designed to unlock the N95 billion festive spending boom in Nigeria.
The new initiative, known as the 03 Capital Blink Travel Card, promotes economic participation among returning Nigerians, expatriates, and tourists.
A statement from the financial technology (fintech) firm is available instantly to use at over 40 million merchants and ATMs nationwide.
The Blink Card, to be issued in both digital and physical form, is loaded with currency from any foreign bank card, converted to Naira, enabling transactions to be completed in the local currency.
The card offers tap-to-pay and cash withdrawals at over 40 million merchants and ATMs nationwide, making it the ideal solution for visitors to Nigeria.
It also avails Nigerians in the Diaspora to spend like locals when they return to their country of origin.
Payments for goods and services can be completed via the virtual Blink Card, linked to the O3Cards app. Funds can also be transferred instantly to all local banks and other financial institutions.
According to the World Bank, remittance inflows account for approximately 5.6 per cent of Nigeria’s gross domestic product (GDP), and the resultant spending power is unlocked when the Diaspora returns home for the festive period.
In December 2024, about N95 billion was injected into the Nigerian economy by inbound passengers – 90 per cent being diasporic Nigerians – spending on short-let accommodation and hotels, events and hospitality, nightlife and dining, and vehicle rentals. The launch of the Blink Card promises to spur this spending further, providing a significant boost to local businesses.
Blink Cards are available for collection at all Nigerian international airports, offering an immediate and hassle-free route to financial empowerment for people arriving in the country.
Blink Card carriers benefit from increased convenience, flexibility, and safety by not needing to carry large amounts of physical cash, while the ability to pre-load cards promotes smarter budgeting practices.
“We are excited to launch the Blink Card to promote greater economic participation among visitors to Nigeria.
“The card removes the needless friction and costs involved in legacy foreign exchange and cash payment processes, offering a quicker and more transparent option for spending in the country.
“As Nigerians begin travelling home for Christmas – combined with the regular traffic of arriving tourists, expatriates, and businesspeople – this is the perfect time to launch a solution catering to the financial needs of visitors, tapping into the seasonal spending boom which provides an annual lifeline for local economies and SMEs,” the chief executive of 03 Capital, Abimbola Pinheiro, stated.
By Modupe Gbadeyanka
Technology leaders from across Nigeria’s digital finance ecosystem recently converged on Eko Convention Centre in Lagos to explore pathways for expanding credit access to underserved communities.
It platform for this was the 2025 Committee of e-Business Industry Heads (CeBIH) Annual Conference themed Reimagining Financial Inclusion through Cultural Shifts in Consumer Credit. Interswitch was a returning gold sponsor.
At a high-impact panel session titled Alternative Credit Scoring for the Underserved, moderated by Wunmi Ogunbiyi of the CeBIH Advisory Council, the Divisional Head of Product Management and Solution Delivery at Verve International, a subsidiary of Interswitch Group, Mr Ademola Adeniran, examined how alternative data and digital intelligence can unlock credit for millions excluded by conventional financial models.
“For us, this conversation goes beyond technology. It is about designing credit systems that truly reflect African realities.
“Millions transact daily outside traditional banking frameworks, and alternative credit scoring enables us to recognise that economic activity and responsibly convert it into access to finance.
“At Verve and Interswitch, we are committed to building the digital infrastructure that makes this inclusion scalable and sustainable,” Mr Adeniran stated.
Also, the Vice President for Sales and Account Management, Digital Infrastructure and Managed Services at Interswitch Systegra, Ms Robinta Aluyi, stressed the importance of African-led solutions in addressing the continent’s financial challenges, noting that sustainable progress must be rooted in local realities.
Interswitch’s strength, she said, lies in the fact that it was built on the continent, for the continent, with solutions designed to serve individuals, small businesses, enterprises, and government institutions across every layer of the payment value chain.
She also emphasized the company’s purpose-driven approach to building the infrastructure that powers Africa’s digital economy and enabling secure money movement on a scale.
“Interswitch helps people navigate their daily lives with greater ease. We make transactions flow safely and reliably. We do this by connecting banks, supporting secure and reliable payments, and strengthening the entire value chain of digital finance.
“Today, we hold a significant portion of the market, and that achievement reflects the deep trust our banking and fintech partners place in our platforms. We continue to deliver because the ecosystem has worked with us every step of the way,” Ms Aliyu said.
There were also contributions from Munachimso Duru, Head, Products, Partnership and Innovation, Afrigopay Financial Services Limited; Damola Giwa, Country Manager, Visa West Africa; Nike Kolawole, representing Aisha Abdullahi, Executive Director, Credit and Portfolio Management, CREDICORP; and Ifeanyi Chukuwekem, Head, Corporate Strategy Department, eTranzact, offering a broad industry perspective on the future of responsible credit delivery.
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