Contrary to the speculations in some quarters including the labour unions that the recently implemented Cybersecurity Levy on some bank transactions is a policy of the Central Bank of Nigeria (CBN), it is not.
Recall the CBN had in a circular on May 6 2024 directed all banks to implement the provision of the Cybercrimes (Prohibition, Prevention Etc) (Amendment )Act 2024 which prescribed 0.05 (0.005) percent levy on certain electronic funds transfers. Sisteen types of transactions were exempted from the levy to cushion the burden.
They include; The exemptions included loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank, and Other Financial Institutions (OFIs) instructions to their correspondent banks.
The exemption also applies to interbank placements, banks’ transfers to CBN and vice versa, inter-branch transfers within a bank, cheque clearing and settlements, and Letters of Credit (LCs).
Others include banks’ recapitalisation-related funding only bulk funds movement from collection accounts; savings and deposits including transactions involving long-term investments such as treasury bills, bonds; and commercial papers; government social welfare programmes transactions, e.g. pension payments; non-profit and charitable transactions including donations to registered non-profit organisations or charities; educational institutions transactions, including tuition payments and other transaction involving schools, universities, or other educational institutions.
Transactions involving the bank’s internal accounts, such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts, are also exempt from the levy.
The circular was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
It noted that “Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (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 which shall be administered by the Office of the National Security Adviser.”
This means that when the directive becomes operational, banks will now charge you N25,000 when you transfer up to N5 million and N50,000 when you transfer of up to N10 million, N100,000 charge will apply on N20 million transaction.
There has been public outcry over the levy with some commentators suggesting that the levy is too high and should be reviewed downward.
The Nigerian Labour Congress (NLC) in a statement rejected the newly introduced cybersecurity levy.
The statement by its President, Joe Ajaero, the NLC lamented that the levy is another anti-people policy of the government amid excruciating economic hardship.
The statement said “The Nigeria Labour Congress, vehemently condemns the recent directive by the Central Bank of Nigeria, CBN, to levy a 0.5 per cent ‘Cybersecurity Levy’ on electronic transfers.
However, contrary to the position by NLC and some other persons that it is the CBN that has imposed levy is not true.
Based on the circular released by the apex bank, it only implemented a provision of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 as directed by the federal government.
Also based on the memo, the funds are to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”
In addition, the CBN doesn’t have any fee in the said levy as all the deductions will be passed on to the Fund as indicated in the Act.
