The Central Bank of Nigeria has ordered banks operating in the country to start charging a cybersecurity levy on transactions. A circular from the apex bank on Monday disclosed that the levy implementation would start two weeks from today.....KINDLY READ THE FULL STORY HERE▶
The circular was directed to all commercial, merchant, non-interest, and payment service banks, among others.
The circular revealed that it 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), respectively, on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
However, the apex bank exempted 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 from the levy.
Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, and Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings, and deposits including transactions involving long-term investments, among others.
Nigerians on social media are lamenting the new levy, which they complain has added to the multiple levies paid for electronic transactions. In this report, PUNCH Online highlights the five other transaction levies paid and the amount deducted on transactions between N1,000 and N1,000,000.
1. Cybersecurity levy
N5 is charged on the transaction of N1,000
N50 is charged on the transaction of N10,000
N500 is charged on the transaction of N100,000
N5,000 is charged on the transaction of N1,000,000
N50,000 is charged on the transaction of N10,000,000
2. Transfer fee
N10 is being charged on the transaction below N5,000
N25 is being charged on the transaction between 5,001 and N50,000
N50 is being charged on transactions above N50,000
3. Stamp duties
N50 is being charged on transactions between N10,000 and N10,000,000
4. Short Messaging Service (SMS)
N4 is being charged on each electronic transfer notification
NB: This is only applicable to customers on eligible electronic transactions. Those who opt for e-mailing services are not charged the same.
5. Value Added Tax
N0.75 is being charged on the N10 transfer fee
N1.875 is being charged on the N25 transfer fee
N3.75 is being charged on the N50 transfer fee.
We Told Them Election Has Consequences – Nigerians React to Tinubu-Led Administration’s Cybersecurity Levy
Nigerians have reacted after the Central Bank of Nigeria (CBN) issued a new directive to all financial institutions, including commercial, merchant, non-interest banks, payment service banks, and mobile money operators to charge a 0.5% cybersecurity levy on all electronic transactions.
It said the new directive is in line with the provisions of the recently amended Cybercrime (Prohibition, Prevention, etc.) Act 2024.
The directive, detailed in a circular dated June 25, 2024, instructs that the levy be applied at the point of electronic transfer origination, with the deducted amount to be reflected in the customer’s account as “Cybersecurity Levy.”
Financial institutions are required to start deductions within two weeks from the date of the circular and remit the accumulated levies monthly to the National Cybersecurity Fund (NCF), which is administered by the Office of the National Security Adviser (ONSA).
Following the directive, Nigerians have taken to social media to react.
See reactions below:
@Royal_Spotlight wrote: “With this new levy, account holders will now be paying charges as follows:
1. VAT: 0.75%
2. Stamp Duty charge on every credit. (N50)
3. Cybersecurity Levy: 0.5% on all transactions.
4. Commission (depending on amount to be transferred)
5. SMS charges
“Tell me one good thing Tinubu has given the people since May 29th 2023.”
@Tobicods wrote: “To be sincere this new cybersecurity levy of 0.5 percent must be reversed, it really makes no sense at all.
“So if i make a transfer of 1million to another account the bank takes 5k just like that, for their own personal use.
“This is Nonsense!!!”
@nuellaluchi wrote: “We told them Election has consequences, they said is it statistics that we will chop. This is just the beginning.”
@TosinOlugbenga wrote: “Is cybersecurity levy you are complaining of, many more to come.”
@ChidiOdinkalu wrote: “This is taking a joke too far. @cenbank is created & its powers are constrained by law. This thing here is entirely outside the powers allocated to by the #CBNAct. This joke has to stop!”
@Benking443 wrote: “This is the senator that introduced this Cyber Security Levy bill has now been passed as a law
“Shehu Buba Umar, representing Bauchi South Constituency under APC.
“Check his profile. From school teacher to SSA to former Bauchi Governor.
“He has never built a business. He doesn’t know the rigors of making 50k as a business man. Wealth without enterprise.”
@Irunnia_ wrote: “In the last 1 week, Tinubu’s government have banned Crypto p2p on every platform, increased tax by 14% on importers and put a 0.5% cybersecurity levy on every banking transaction made.”
@SasDantata wrote: “The cybersecurity levy needs to be shelved for now. Asking ppl to pay more when they’re already facing serious financial challenges, high inflation, & other forms of hardship is a bit too harsh.
“I hope that the Federal Gov’t and Cardoso rethink the implementation of this policy!”
@Khanstillday wrote: “It’s only almost 1 year since the current Tinubu administration came in and here is some of their progress so far:
– Fuel went from #180-#650
– Dollar rates from #600-#1,500
– Cybersecurity levy added to bank charges
– Poverty level went from 60% to 87%
– Insecurity in the country is now over the roof
– corruption is on the rise in the country like we’ve never seen before.
– minimum wage is still 33k in 2024.
“It’s only one year, 7 more years to go. I wonder what will become of this country when this man is done with it.“
Cybersecurity Levy 0.005% Not 0.5% – Tinubu’s Aide Onanuga Makes Clarifications
Bayo Onanuga, the spokesperson to President Bola Ahmed Tinubu has given an update on the new cybersecurity levy.
He stated that the recently introduced cybersecurity levy to all banks and financial services is 0.005 per cent, not 0.5 per cent.
The Central Bank of Nigeria, in a notice on Monday, ordered all banks to collect and remit cybersecurity levy to the National Security Adviser.
The bank stated that the deduction and collection of the cyber security levy is the sequel to the enactment of the 2024 Cybercrime (prohibition, prevention, etc.).
However, Onanuga, in a post through his official X handle, clarified that the levy is 0.005 per cent in line with its establishment law.
“Cybersecurity levy is not 0.5 per cent but 0.005 per cent”, he wrote.
A further analysis of the levy showed that 16 transactions were exempted.
Meanwhile, the levy raised alarm over multiple taxes by Tinubu’s administration.
Recall that the government also plans to reintroduce the Telecommunications tax and other fiscal measures as part of the requirement for a $750 million loan from the World Bank.