Bank Customers To Begin Payment Of 0.5% Cybersecurity Levy On Electronic Transfer In Two Weeks
Within the next two weeks, bank customers will begin the payment of 0.5 per cent cybersecurity levy on all electronic transfer.The Whistler can report
The move is sequel to a directive by the Central Bank of Nigeria (CBN) mandating banks and other financial institutions to implement a 0.5 per cent cybersecurity levy on electronic transfers.
The directive is contained in a circular signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation on Monday.
The directive was issued to commercial, merchant, non-interest and payment service banks, as well as mobile money operators.
The apex apex said the policy would take effect in two weeks and charges would be described as ‘Cybersecurity Levy’.
According to the apex bank, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.
The CBN said, “Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, “a levy of 0.5 per cent (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 (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).
“Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows
“Calculate the levy based on the total 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.’
“Deductions 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.”
The CBN said the charges would be remitted to the national cyber security fund, which would be administered by the office of the NSA.
It said said failure to remit the levy is an offence which attracts a fine of not less than two percent of the annual turnover of the defaulting business, amongst others
