Nigeria: CBN Implements Cybersecurity Levy on Electronic Transfers

The Central Bank of Nigeria (CBN) has mandated a 0.005 percent Cybersecurity Levy deduction on electronic transfers, according to a circular issued yesterday. Directed by the Director of Payment Services, Uzoma Efobi, the levy will take effect in the next two weeks and applies to all banks and payment service operators in the country.

The CBN specified that the deductions would occur at the transaction origination point and would be consolidated and remitted into the Cybersecurity Fund held by the CBN. Defaulting institutions could face fines of not less than two (2) percent of their annual turnover. However, interbank transfers and loan transactions are exempt from the CBN cybersecurity levy.

The circular follows earlier correspondence dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), which emphasized compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. It cited the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, which mandates a levy of 0.5 percent (0.005) equivalent to half a percent of all electronic transaction values by businesses specified in the Second Schedule of the Act. These funds are to be remitted to the National Cybersecurity Fund administered by the Office of the National Security Adviser. The deducted amount will be reflected in customers’ accounts with the narration “Cybersecurity Levy.”

The CBN’s cybersecurity levy implementation comes on the heels of the Federal Government’s recent implementation of a deduction for ‘Stamp Duty.’ Deposit Money Banks are now required to deduct a 0.375 percent stamp duty charge on all mortgage-backed loans and bonds.