The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to apply a 0.5% cybersecurity fee on electronic transactions.
This was stated in a circular signed by Chibuzor Efobi, director of payments system management, and Haruna Mustafa, head of financial policy and regulation, on Monday.
The mandate applies to commercial, merchant, non-interest, and payment service banks, as well as mobile money operators.
The CBN stated that the policy would go into force in two weeks, with costs referred to as a ‘Cybersecurity Levy’.
According to the apex bank, the deduction and collection of the cybersecurity charge is a result of the 2024 Cybercrime (Prohibition, Prevention, and Other Amendment Act).
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% (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).”
CBN stated that the charges would be remitted to the national cyber security fund, which would be overseen by the NSA’s office.
“Deductions shall commence within two (2) 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 stated that failing to remit the charge is an infraction punishable by a fine of at least 2% of the defaulting business’s annual revenue, among other penalties.
“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”