CBN CYBERSECURITY LEVY EXEMPTIONS:

The Central Bank of Nigeria (CBN) has instructed banks and financial institutions to begin collecting a cybersecurity levy. This levy will be used to fund national cybersecurity initiatives under the 2024 Cybercrime (Prohibition, Prevention, etc) Amendment Act.

Key Points:

• Levy Rate: 0.5% of the value of all electronic transactions.
• Administration: National Cyber Security Fund managed by the Office of the National Security Adviser (NSA).
• Application: Charged at the point of origin for electronic transfers.
• Exemptions:
  • Loan disbursements and repayments
  • Salary payments
  • Intra-bank and interbank transfers for the same customer
  • Transfers between accounts within the same bank
  • Instructions from other financial institutions to their correspondents
  • Bank interbank placements
  • Transfers between banks and the CBN
  • Internal bank transfers
  • Cheque clearing and settlements
  • Letters of Credit
  • Bank recapitalization (bulk funds only)
  • Savings and deposits (including long-term investments)
  • Government social programs (e.g., pensions)
  • Non-profit and charitable donations
  • Educational institution transactions (tuition and fees)
  • Bank internal account movements (suspense, clearing, P&L, inter-branch, reserve, nostro/vostro, and escrow accounts)

Overall Impact:

This levy aims to strengthen Nigeria’s cybersecurity posture by providing dedicated funds for preventative measures and response efforts. The exemptions ensure minimal disruption to essential financial activities and transactions affecting vulnerable groups.

Cyber Security Levy: CBN orders banks, PSPs to begin collection and remittance

Source: Nairametrics