The Central Bank of Nigeria (CBN) has officially withdrawn the directive earlier given to banks to enact the process of deduction of cyber security levy to be administered by the office of the National Security Adviser (NSA).
The announcement was disclosed in a circular signed by the bank’s director of payments system management, Mr Chibuzor Efobi and director of financial policy and regulation, Haruna Mustafa and sent to different categories of banks, including mobile money operators, payment service providers and others
The statement said “the circular on deduction and collection of the cyber security levy is hereby withdrawn.”
The apex bank had in line with the enactment of the 2024 cyber crime (prohibition, prevention etc) amendment Act of 2024 which provides for a 0.5percent deduction of the value of all electronic transactions to the National Cyber Security Fund which would be administered by the office of the national security adviser.
Consequently, CBN on May 6, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers, to implement a new cyber security levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”).
Financial institutions were required to apply the levy at the point of electronic transfer origination.
The deducted amount was to be explicitly noted in customer accounts under the descriptor “Cyber security Levy” and remitted by the financial institution.
