The Central Bank of Nigeria (CBN) has recently instructed all banks to implement a 0.5 percent cybersecurity levy on electronic transactions carried out within the country.
In a circular obtained by PUNCH Online, signed by Chibuzo Efobi, Director of the Payments System Management Department, and Haruna Mustafa, Director of the Financial Policy and Regulation Department, the apex bank specified that the levy would be applicable starting two weeks from Monday, May 6, 2024.
According to the circular, which was addressed to commercial, merchant, non-interest, and payment service banks, among others, the cybersecurity levy will be charged at the point of electronic transfer origination. Financial institutions will deduct and remit the levy, and customers will see the deducted amount reflected in their accounts with the description ‘Cybersecurity Levy.’
However, amidst this new development, there are certain transactions that will be exempted from the levy. Here is a comprehensive list of the 16 banking transactions that will not be subject to the CBN’s new cybersecurity levy:
Loan disbursements and repayments
Salary payments
Intra-account transfers within the same bank or between different banks for the same customer
Intra-bank transfers between customers of the same bank
Other Financial Institutions’ instructions to their correspondent banks
Interbank placements
Banks’ transfers to CBN and vice-versa
Inter-branch transfers within a bank
Cheque clearing and settlements
Letters of Credits
Banks’ recapitalization-related funding – only bulk funds movement from collection accounts.
Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
Government Social Welfare Programs transactions (e.g., Pension payments)
Non-profit and charitable transactions, including donations to registered non-profit organizations or charities.
Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
Transactions involving the bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
These 16 exempted transactions will not be subject to the new cybersecurity levy imposed by the CBN, providing relief for individuals and organizations engaging in these specific financial activities.
