For the sake of enhancing cybersecurity measures in Nigeria, the Central Bank of Nigeria (CBN) has instructed all banks within the country to begin collecting and remitting a 0.5% cybersecurity levy to the office of the National Security Adviser (NSA).
In a notice issued by its directors, Chibuzor Efobi and Haruna Mustafa from the Payment System Management and Financial Policy and Regulation Departments, the apex bank made this directive known on Monday.
As per the announcement, this levy deduction is in accordance with the 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.
The Act mandates a 0.5% deduction on the value of all electronic transactions for the National Cyber Security Fund, which will be overseen by the office of the National Security Adviser.
Additionally, financial institutions are instructed to label this deduction as a cybersecurity levy and are required to commence the deduction within two weeks of receiving this notice.
Under the provision of Section 44 (2)(a) of the Act, the directive states that a levy of 0.5% (0.005) must be remitted to the National Cybersecurity Fund (NCF) from the total value of electronic transactions made by the businesses listed in the Second Schedule of the Act.
Therefore, all Banks, Other Financial Institutions, and Payments Service Providers must adhere to the following guidelines:
Calculate the levy based on the total electronic transfer origination, then deduct and remit the amount.
Ensure that the deducted amount is documented in the customer’s account with the description: ‘Cybersecurity Levy.’
The directive also highlights the consequences of non-compliance, stating that failure to remit the levy could lead to penalties as outlined in Section 44 (8) of the Act, including fines amounting to not less than 2% of the defaulting business’s annual turnover.