Saturday, June 15, 2024
Saturday, June 15, 2024

Five Things To Know About The New Cybersecurity Levy To Be Paid by Nigerians [Punch]


The Central Bank of Nigeria, on Monday, directed banks and other financial institutions to start charging a cybersecurity levy on all banking transactions. PUNCH Online reports that, according to the circular, the implementation of the levy would start in two weeks.

The circular read in part, “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 percent 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.”

Here are some things to know about the cybersecurity levy to be paid by Nigerians, according to the CBN circular:

1. A new levy of 0.5%, equivalent to half per cent, is applied to electronic transactions as mandated by the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.

2. The levy is paid by the originator of the electronic transaction and deducted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration: “Cybersecurity Levy.”

3. Financial institutions will deduct the levy and remit it to the National Cybersecurity Fund administered by the Office of the National Security Adviser.

4. Deductions shall commence within two weeks from the date of the circular, May 6, and financial institutions must remit collected levies in bulk to the NCF account domiciled at the CBN monthly by the fifth business day of the following month.

5. Financial institutions have deadlines to update their systems to handle levy deduction and remittance. Failure to remit the levy can result in penalties, including a fine of up to 2% of a financial institution’s annual turnover.


Please enter your comment!
Please enter your name here

Share post:




More like this

Hardship: Labour Kicks as 20 States Deny Workers Wage Award

Eight months after the Federal Government commenced payment of...

LP alleges Enugu Govt Awarded N100b Contract to 4-day-old Company

The Enugu State chapter of the Labour Party (LP)...

Shettima justifies Tinubu’s Tax Reforms, Says They Were Initiated to Benefit Nigerians

Vice-President Kashim Shettima has justified the tax reforms of...

RIVERS CRISIS: Ex-PDP Nat’l Chairman Reveals Real Reason Behind Wike, Fubara Fight

Former National Chairman of the Peoples Democratic Party (PDP),...
× Contact Us