Nigerian banks will start deducting 0.5% cybersecurity levy as directed by CBN

The Central Bank of Nigeria (CBN) has directed banks and other financial entities to impose a cybersecurity charge, on electronic transactions. The communication about this directive was conveyed through a statement signed by two CBN directors, Chibuzor Efobi and Haruna Mustafa.

The objective is to contribute to the National Cybersecurity Fund (NCF) managed by the Office of the National Security Adviser (ONSA).

This introduction of the charge follows the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024. According to Section 44 (2) (a) of the Act, a fee of 0.5% will be levied on all transactions carried out by businesses listed in the Second Schedule of the Act. Financial institutions handling these transactions will deduct this fee at the initiation point of transfers. Then transfer it.

Customers will notice this deducted amount labelled as “Cybersecurity Levy” on their account statements. The circular stipulates that deductions should start within two weeks from its issuance date, for all institutions. These collected fees will be sent collectively to the NCF account at CBN by every business day of each month.

The Central Bank of Nigeria has also set out consequences for not following this directive. If a business fails to pay the levy it is seen as breaking the rules. If found guilty may be fined two per cent of its yearly revenue along, with other potential punishments.

This new cybersecurity fee is introduced as banks announce the return of a 2 per cent fee on deposits of over N500,000.