CBN new Directive: All Nigerian will pay 0.5% CyberSecurity Charges on all electronic transactions

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to enforce compulsory 0.5 percent cybersecurity charges on all electronic transactions.

CBN Implements Cybersecurity Charges In Financial Institutions

This directive in a circular, signed by Chibuzor Efobi, director of payments system management. Also, a co-signer, Haruna Mustafa, who is the director of financial policy and regulation.

The circular was released on Monday, 6th, 2024, and issued to all financial-related companies. Affected firms are commercial, merchant, non-interest, and payment service banks. Additionally, it includes mobile money operators.

CBN said the policy of cybersecurity charges would take effect in two weeks. Also, it would be termed a ‘Cybersecurity Levy’.

Cybersecurity Charges Remitted To the NCF

CBN hinted that the deduction and collection of the cybersecurity charges are in line with the enactment of the Cybercrime Amendment Act of 2024.

The Amendment says: ‘Following the enactment of the Cybercrime 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 emphasized that the cybersecurity charges would be remitted to the national cyber security fund. This would be administered by the office of the NSA.

Conclusion

The new policy will take effect within two (2) weeks from the issued date of the circular. It will be effective for all financial institutions. Also, there will be a monthly remittance of the charges collected in bulk to the NCF account. This account is domiciled at the CBN. Also, the remittance must be done by the 5th business day of every subsequent month.

According to the apex bank, failure to remit the levy is an offense that attracts a fine of not less than 2 percent of the annual turnover of the defaulting business, amongst others.

CBN warns financial institutions saying: “Finally, all institutions under the regulatory purview of the CBN are directed to note and comply with the provisions of the Act and this circular.”

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