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Banks will be Deducting Cybersecurity Fees on Electronic Transactions

Banks will be Deducting Cybersecurity Fees on Electronic Transactions 

Mallam Nuhu Ribadu, National Security Adviser (NSA)

Commercial banks and other financial institutions are required by the Federal Government to begin charging a cybersecurity levy on the banking transactions of Nigerians.

The apex bank announced this on Monday, May 6, 2024, in a circular signed by Chibuzor Efobi, Director of Payments System Management, and Haruna Mustafa, Director of Financial Policy and Regulation.

The circular, which was directed to all commercial, merchant, non-interest, and payment service banks stated that the implementation of the levy would start in two weeks.

Part of the circular stated that “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.”

Yemi Cardoso, Governor of CBN

The top bank stated that all financial institutions will start to deduct the fee within two weeks of the circular’s date, and that the levies will be collected in bulk each month and remitted to the NCF account, which is managed by the CBN.

The circular stated, “In conclusion, all institutions falling under the regulatory jurisdiction of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”

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