Central Bank Directs Banks to Implement 0.5% Cybersecurity Levy on E-Transfers

“Cybersecurity Levy Mandated by CBN for Electronic Transactions Starting May 20, 2024”
The Central Bank of Nigeria (CBN) has instructed all financial institutions to initiate the deduction of a cybersecurity levy on electronic transactions from May 20, 2024. This directive follows a six-year delay since its original issuance in 2018. The levy, set at 0.005% of the transaction amount, will be forwarded to the National Security Fund overseen by the Office of the National Security Adviser (ONSA). It encompasses electronic transactions conducted through various financial channels such as commercial banks, mobile money operators, and payment service providers. Non-compliance with the directive will incur a penalty equivalent to 2% of the institution’s annual turnover. Although the CBN initially provided guidelines for levy collection in 2018, its implementation faced delays.