Banks Introduce Cybersecurity Levy On Transactions

In response to the growing threat of cybercrime in Nigeria, deposit money banks across the country are set to implement a new cybersecurity levy, charging 0.5% on transactions.

The announcement came through a circular issued on May 6, 2024, by the Central Bank of Nigeria (CBN) to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers.

According to the circular, the decision to introduce the levy stems from the enactment of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024. Pursuant to Section 44 (2) (a) of the Act, a levy of 0.5% of all electronic transaction values is to be remitted to the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA).

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’,” the circular stated.

The implementation of the levy is set to commence two weeks from the date of the circular, indicating that Nigerians can expect to see the levy reflected in their transactions imminently.

With cyber threats on the rise, the introduction of this levy underscores the banking sector’s proactive approach to enhancing cybersecurity measures and safeguarding customers’ digital transactions against potential breaches.

As the country grapples with increasing cyber risks, this initiative aims to bolster Nigeria’s cybersecurity infrastructure and protect both financial institutions and consumers from cyber threats in the digital age.