The Central Bank of Nigeria (CBN) has announced the reinstatement of a cybercrime levy set at 0.005% on all electronic transactions.
This decision, effective for the 2024-2025 fiscal year, was detailed in new policy guidelines released on September 17, 2024.
Originally introduced in May 2024 and suspended due to public backlash, the levy is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
“The CBN shall continue to enforce the mandatory levy of 0.005% on all electronic transactions conducted by banks and other financial institutions, as stipulated by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,” the circular states in part.
According to the CBN, the funds collected will be directed towards a cybersecurity fund aimed at strengthening the security of electronic transactions.
Under the new guidelines, the CBN emphasizes the importance for banks and financial institutions to meet cybersecurity standards and appoint Chief Information Security Officers. This aligns with the 2022 risk-based cybersecurity framework, ensuring compliance with essential cybersecurity protocols.
In addition to reintroducing the levy, the CBN has specified certain exemptions, including loan disbursements, salary payments, educational fees, and transactions between internal bank accounts and government social welfare programmes.
The CBN’s decision comes after earlier plans to impose a 0.5% levy, which faced criticism and was subsequently withdrawn in May 2024.
The reintroduced 0.005% cybercrime levy is designed to bolster national efforts against cybercrime. Institutions that fail to remit the levy as mandated will incur penalties, including fines based on their annual turnover.
The CBN’s guidelines ensure that the levy will be deducted at the point of electronic transfer and clearly indicated in account statements with appropriate narration.
Financial institutions must comply with these updated guidelines and the provisions of the Cybercrime Act.
###
