The Central Bank of Nigeria (CBN) has ordered all banks to start charging a 0.5% cybersecurity levy on all electronic transactions within the country excluding 16 listed banking deals.
BUSINESS METRICS reported that the cybersecurity would commence two weeks from May 6, 2024, according to a circular signed by the Director, Payments System Management Department, Chibuzo Efobi; and the Director, Financial Policy and Regulation Department, Haruna Mustafa.
The apex bank, in the circular, directed to all commercial, merchant, non-interest, and payment service banks, among others; to start the implementation of the cybersecurity charges after two weeks of the information.
“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 account with the narration, ‘Cybersecurity Levy,’” the circular partly read.
However, the CBN listed 16 banking transactions exempted from the new cybersecurity levy.
The exempted transactions are listed below:
- 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
- Cheque clearing and settlements
- Letters of Credits
- 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
- Transactions involving 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.
