CBN Orders Banks To Charge 0.5% Cybersecurity Levy On Transactions

In a move to fortify Nigeria’s financial system against cyber threats, the Central Bank of Nigeria (CBN) has mandated banks to enforce a cybersecurity levy on transactions, starting within two weeks.

“The levy shall be applied at the point of electronic transfer origination,” the CBN stated, emphasizing its commitment to compliance with the Cybercrimes Act.

According to the circular issued on Monday, all banks and financial institutions must adhere to the directive, deducting and remitting the levy from electronic transfers. Customers will see a deduction labeled ‘Cybersecurity Levy’ in their accounts.

“Deductions shall commence within two weeks,” the CBN reiterated, stressing the monthly remittance of collected levies to the designated account.

Transactions exempted from the levy include loan disbursements, salary payments, and intra-bank transfers, among others.

The CBN’s recent actions align with its broader efforts to bolster the financial sector’s integrity. Just weeks ago, the apex bank restricted fintechs from onboarding new customers, citing regulatory concerns. Fintechs, in response, cautioned against crypto transactions on their platforms.

READ ALSO: Africa’s Premier Cybersecurity Event, African CISO Summit 2024 to Take Place in Nairobi

This move follows the Federal Government’s directive for Deposit Money Banks to levy a 0.375% stamp duty charge on mortgaged-backed loans and bonds.

The CBN’s proactive measures underscore the importance of cybersecurity in Nigeria’s evolving financial landscape. By instituting this levy, the apex bank aims to enhance resilience against cyber threats, safeguarding the integrity of financial transactions nationwide.

In response to the directive, banking customers expressed mixed sentiments. “While cybersecurity is paramount, additional levies burden consumers,” remarked one customer, reflecting concerns over potential increases in transaction costs.

However, cybersecurity experts lauded the initiative as a crucial step in mitigating cyber risks. “Investing in cybersecurity is essential for protecting financial systems from evolving threats,” stated an industry analyst, emphasizing the importance of proactive measures.

As Nigeria continues to navigate the complexities of the digital age, initiatives like the cybersecurity levy serve as pivotal safeguards, ensuring the resilience and security of its financial infrastructure.