Tuesday, 07 May 2024 05:00

CBN mandates banks to deduct money for every electronic transaction as ‘cybersecurity levy’

Rate this item
(0 votes)

The Central Bank of Nigeria (CBN) has mandated all financial institutions in the country to commence deductions for a cybersecurity levy on electronic transactions, effective May 20, 2024, following a directive issued six years after its initial issuance.

The levy, to be remitted to the National Security Fund administered by the Office of the National Security Adviser (ONSA), will be deducted from all electronic transactions conducted through various financial channels, including commercial banks, merchant banks, non-interest banks, payment system banks, mobile money operators, and payment service providers.

Non-compliance with the directive and failure to remit the levy within the stipulated timeframe will attract a penalty of two percent of the institution's annual turnover.

Originally introduced in 2018 with a levy rate of 0.5 percent on electronic transactions, the implementation was delayed. However, a recent circular jointly signed by the CBN's director of payments systems management and director of financial policy and regulation now mandates the deduction and remittance of the levy.

As per the circular, the levy, equivalent to 0.5 percent of all electronic transaction values, will be applied at the point of transaction origination and reflected in customers' accounts with the narration "Cybersecurity Levy." Deductions are to commence within two weeks from the circular's date, with monthly remittances to the NCF account domiciled at the CBN by the fifth business day of each subsequent month.

Financial institutions are required to complete system reconfigurations to ensure timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) Plc within four weeks for commercial, merchant, non-interest, and payment service banks, as well as mobile money operators. Other financial institutions have eight weeks to complete the reconfigurations.

Certain transactions are exempted from the levy to prevent double application. Failure to remit the levy is considered an offence under Section 44 (8) of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and is subject to penalties, including fines of not less than two percent of the defaulting business's annual turnover.

July 01, 2025

Nigerian stock market soars with N13.2trn windfall for investors in Half 1, 2025

Nigeria’s equity markets delivered exceptional performance in the first six months of 2025, generating massive…
June 26, 2025

Peter Obi decries ‘coordinated lawlessness’ after brother’s property is demolished in Lagos without court order

Former presidential candidate Peter Obi has condemned what he described as a brazen act of…
July 01, 2025

The biggest communication mistake many people make

Maybe it's the Gen Z in me, but I’m not a fan of corporate jargon.…
June 21, 2025

Man convicted of posing as flight attendant to fly for free 120 times

A 35-year-old American man has been found guilty of impersonating a flight attendant at least…
June 30, 2025

Bandits strike again in Benue, kill four policemen in fresh attacks

Armed bandits on Sunday launched another deadly assault on Benue State, killing at least four…
July 01, 2025

Here’s the latest as Israel-Hamas war enters Day 634

Israel strikes pound Gaza, killing 60, ahead of US talks on ceasefire Israeli strikes killed…
June 30, 2025

The computer-science bubble is bursting

Rose Horowitch The job of the future might already be past its prime. For years,…
May 13, 2025

Nigeria's Flying Eagles qualify for World Cup after dramatic win over Senegal

Nigeria's U-20 national football team, the Flying Eagles, have secured their place at the 2025…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.