CBN Mandates ‘Cybersecurity Levy’ Deductions on Electronic Transfers

The Central Bank of Nigeria (CBN) has issued a directive for a 0.005 percent Cybersecurity Levy to be deducted from electronic transfers, effective within the next two weeks.

In a circular released yesterday by Uzoma Efobi, Director of Payment Services at the CBN, all banks and payment service operators were instructed to implement the levy at the transaction origination point. These deductions will be aggregated and deposited into the Cybersecurity Fund held by the CBN.

Non-compliance with this directive may result in fines of not less than two percent of the defaulting institution’s annual turnover. However, interbank transfers and loan transactions are exempted from the Cybersecurity Levy.

This directive follows previous communications, dating back to June 25, 2018, and October 5, 2018, regarding compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015. The circular referenced the recent amendment to the Act in 2024, which mandates the levy as a contribution to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.

Additionally, the CBN emphasized that the deducted amount will be clearly indicated in customers’ accounts with the description ‘Cybersecurity Levy.’