From Victor Osula, Abuja
Nigerians are to pay 0.5 per cent per electronic transactions to fund the cyber security Levy according to a new directive from the e Central Bank of Nigeria (CBN) to banks.
The deduction of cyber security levy will be administered by the office of the National Security Adviser (NSA).
This was disclosed in a circular to different categories of banks, mobile money operators, payment service providers and others, signed by the apex bank’s Director of payments system management, Chibuzor Efobi and Director of financial policy and regulation, Haruna .B. Mustafa.
According to the statement, the deduction and collection of the cyber security levy is sequel to the enactment of the 2024 cyber crime (prohibition, prevention etc) amendment Act of 2024 which provides for a 0.5% deduction of the value of all electronic transactions to the National Cyber Security Fund which would be administered by the office of the NSA.
Furthermore, the circular noted that the deduction would be described as Cyber security levy and the relevant financial institutions should begin deduction in two weeks following the secular.
The CBN vowed to penalize any bank for non-compliance .
The apex banks warned that the penalty for defaulting is as prescribed in the amended Cyber Crime Prohibition and Prevention Act which is liable to a fine amounting to no less that 2% of the turnover of the defaulting business and others. “Penalties for Non-compliance Section 44 (8) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business.
There are however a list Of Exemptions From Cybersecurity Charges By The CBN:
1. Loan disbursements and repayments
2. Salary payments
3. Intra-account transfers within the same bank or between different banks for the same customer
4. Intra-bank transfers between customers of the same bank
5. Other Financial Institutions (OFIs) instructions to their correspondent
6. banks Interbank placements
7. Banks’ transfers to CBN and vice-versa
8. Inter-branch transfers within a bank
9. Cheques clearing and settlements
10. Letters of Credits (LCs)
11. Banks’ recapitalization related funding – only bulk funds movement from collection accounts
12. Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
13. Government Social Welfare Programs transactions e.g. Pension payments
14. Non-profit and charitable transactions including donations to registered nonprofit organisations or charities.
15. Educational Institutions transactions, including tuition payments and other transaction involving schools, universities, or other educational institutions.
16. 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
