The Central Bank of Nigeria (CBN) has mandated banks operating in the country to implement a cybersecurity levy on electronic transactions, according to a circular issued by the apex bank on Monday. The levy, aimed at enhancing cybersecurity measures, will be enforced starting two weeks from the date of the circular.
Addressed to all commercial, merchant, non-interest, and payment service banks, among others, the circular serves as a follow-up to previous directives issued on compliance with the Cybercrimes (Prohibition, Prevention, etc.) Act 2015.
However, certain transactions are exempt from this levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank. Also exempted are inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, and banks’ recapitalization-related funding, among others.
Despite these exemptions, Nigerians have expressed dissatisfaction with the new levy, citing the increasing burden of multiple levies on electronic transactions. Below are five other transaction levies currently imposed on transactions ranging from N1,000 to N1,000,000:
1. Cybersecurity Levy:
– N5 on transactions of N1,000
– N50 on transactions of N10,000
– N500 on transactions of N100,000
– N5,000 on transactions of N1,000,000
– N50,000 on transactions of N10,000,000
2. Transfer Fee:
– N10 for transactions below N5,000
– N25 for transactions between N5,001 and N50,000
– N50 for transactions above N50,000
3. Stamp Duties:
– N50 on transactions between N10,000 and N10,000,000
4. Short Messaging Service (SMS):
– N4 per electronic transfer notification (applicable to eligible electronic transactions; customers opting for email notifications are exempt)
5. Value Added Tax (VAT):
– N0.75 on N10 transfer fee
– N1.875 on N25 transfer fee
– N3.75 on N50 transfer fee.
