The Central Bank of Nigeria (CBN) has recently directed banks and other financial institutions to implement a cybersecurity levy on all electronic transactions.
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This move has raised questions among Nigerians regarding the impact it will have on their daily transactions.
Here, Okay.ng will address the most asked questions about the new Cybersecurity levy deduction.
What is the Cybersecurity Levy?
- Introduction of the Levy: A new levy of 0.5%, equivalent to half a percent, has been applied to electronic transactions.
- Purpose: The levy is aimed at bolstering the country’s cybersecurity defenses.
Who Pays the Levy?
- Originator’s Responsibility: The levy is paid by the originator of the electronic transaction and is deducted by the financial institution.
- Narration on Statements: The deducted amount will be reflected in the customer’s account with the narration: “Cybersecurity Levy”.
How Will the Levy Be Administered?
- Remittance to National Cybersecurity Fund: Financial institutions will deduct the levy and remit it to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.
- Commencement and Deadlines: Deductions will commence on May 20, 2024, from the date of the circular, and institutions must remit collected levies monthly.
What Transactions are Affected?
- Scope of the Levy: The levy applies to all electronic transactions except for loan repayments, salary payments, and similar transactions.
What Happens if Institutions Fail to Remit the Levy?
- Penalties for Non-compliance: Failure to remit the levy can result in penalties, including a fine of up to 2% of a financial institution’s annual turnover.
