In a bid to bolster cybersecurity measures across the financial sector, the Central Bank of Nigeria (CBN) has instructed all banks operating in the country to initiate a cybersecurity levy on transactions. According to a circular issued by the apex bank on Monday, the implementation of this levy is set to commence in two weeks.
The directive, addressed to all commercial, merchant, non-interest, and payment service banks, as well as other financial institutions, mobile money operators, and payment service providers, serves as a follow-up to previous communications dated June 25, 2018, and October 5, 2018. These communications emphasized compliance with the provisions of the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
Under the new directive, all financial institutions and payment service providers are mandated to enforce the cybersecurity levy at the point of electronic transfer origination. The levy, set at 0.5%, will be deducted by the financial institution and remitted accordingly. Customers will see this deduction reflected in their account statements, accompanied by the narration ‘Cybersecurity Levy.’
The circular stipulates that deductions are to commence within two weeks from the date of issuance. Furthermore, financial institutions are required to remit the collected levies in bulk to the designated National Cybersecurity Fund (NCF) account domiciled at the CBN. Remittances should be made by the fifth business day of every subsequent month.
However, certain transactions are exempted from the cybersecurity levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and transfers between customers of the same bank, among others.
This directive aligns with the CBN’s ongoing efforts to enhance cybersecurity protocols within the financial sector. Recent regulatory actions, such as the prohibition of fintechs from onboarding new customers and warnings against crypto transactions, reflect the central bank’s commitment to safeguarding the integrity of Nigeria’s financial system.
Additionally, this move follows closely on the heels of another directive issued by the Federal Government, mandating Deposit Money Banks to levy a 0.375% stamp duty charge on all mortgaged-backed loans and bonds.
As the financial landscape continues to evolve, these measures underscore the importance of robust cybersecurity frameworks to mitigate risks and safeguard customer assets and data.
