•Warns against non-compliance
The Central Bank of Nigeria (CBN), on Monday, released the circular on the guidelines on the collection and remittance of cybersecurity levy.
This was contained in a circular released yesterday to all commercial, merchant, non-interest and payment service banks and mobile money operators.
It was signed by Chibuzo Efobi, Director, Payment System Department and Haruna Mustapha, Director, Financial Policy and Regulation Department.
The CBN noted that the recent public engagements by the Office of the National Security Adviser (ONSA) needed to be acted on.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, “a levy of 0.5% (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the Second Schedule of the Act”, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).
“Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows: The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution; The deducted amount shall be reflected in the customer’s account with the narration: “Cybersecurity Levy”; Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month; System reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) Plc shall be completed as follows: “Within four weeks of this circular Commercial, Merchant, Non- Interest and Payment Service Banks; and Mobile Money Operators.
“Within eight weeks of this circular -all Other Financial Institutions (Microfinance banks, Primary Mortgage banks, Development Finance Institutions”, the apex bank explained.
To avoid multiple application of the levy on the same transaction/transfer, the CBN said there are exemptions.
It added that penalties for non-compliance would apply.
“Section 44 (8) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business, amongst others.
“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular”.