Nigerian banks and fintechs have been directed to begin charging 0.5% cybersecurity levy on transactions.
The directive contained in a circular issued by the Nigeria Central Bank (CBN) on Monday said the implementation of the levy would begin two weeks from the day of its announcement.
The circular was directed to all commercial, merchant, non-interest and payment service banks.
The move comes amidst growing concerns about cybercrime targeting financial institutions in Nigeria. The levy, mandated by the recently enacted Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024, aims to generate funds for the National Cybersecurity Fund managed by the Office of the National Security Adviser.
The levy applies to a range of transactions, including online payments, electronic and mobile funds transfers, point-of-sale (POS) transactions, and potentially, ATM withdrawals.
However, the CBN clarified that several categories are exempt, such as loan disbursements and repayments, salary payments, specific intra-bank and inter-bank transfers, cheque clearings, and savings deposits.
While many maintain that the levy is a vital measure against cyber threats, however, detractors highlight worries over its repercussions for Nigerians, especially those dependent on digital transactions. The proposed 0.5% increase might dissuade cashless payments, potentially impeding strides towards financial inclusivity.
Additionally, the transparency surrounding the allocation and utilisation of these funds remains a significant apprehension.
Meanwhile, the Central Bank of Nigeria (CBN) has issued stern warnings regarding non-compliance. Businesses failing to deduct and remit the levy could face fines reaching up to 2% of their annual turnover.
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