THE CABLE
Following the directive by the Central Bank of Nigeria (CBN) to financial institutions for the implementation of the cybersecurity levy on all electronic transactions, questions have been raised regarding the percentage that should be deducted from customers’ transactions.
On May 6, CBN directed banks to implement a “levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions”.
CBN said the policy, which would take effect in two weeks, would be remitted to the national cyber security fund, administered by the office of the national security adviser (ONSA).
According to the apex bank, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under 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 (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” CBN said.
‘0.005% OR 0.5?’
The apex bank’s announcement has left some Nigerians wondering whether the amount to be deducted is 0.005 percent or 0.5 percent.
The confusion expressed by some Nigerians stems from the provisions of the repealed Cybercrimes (prohibition, prevention, etc) Act, 2015 as well as a 2018 CBN circular sent to payment service providers.
Section 44 (2) (a) of the repealed act states that “a levy of 0.005 of all electronic transactions by the businesses specified in the second schedule of this act” shall be paid and credited into the “National Cyber security Fund”.
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