CBN Denies Reinstatement of Suspended Cybersecurity Levy on Electronic Transfers

The Central Bank of Nigeria (CBN) has denied reports of reintroducing the previously suspended cybersecurity levy on electronic transfers.

Recall that the CBN had, on May 20, 2024, withdrawn an earlier directive mandating all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators, to charge a 0.5 percent cybersecurity levy on all electronic transfers.

The cybersecurity levy was initially issued by the Central Bank on May 6, 2024.

However, later reports suggested that the apex bank reinstated the levy, claiming that the percentage had been reduced from 0.5% to 0.005% in the new guidelines.

Part of the statement read: “The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

“Pursuant to the circular titled ‘Issuance of Risk-Based Cybersecurity Framework and Guidelines for Deposit Money Banks and Payment Service Providers,’ referenced BSD/DIR/GEN/LAB/11/25, and dated October 10, 2018, issued by the CBN to combat the increasing cybersecurity threat in the banking industry, banks and Payment Service Providers (PSPs) are mandated to adhere to the guidelines on the risk-based cybersecurity framework.”

Reacting to these reports, the CBN, in a statement on Friday, clarified that there is no reversal on the suspension of the cybersecurity levy.

The apex bank made this clarification in a statement titled, “Clarification on the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024 – 2025 (Monetary Policy Circular No. 45).” It stated that the earlier released circular had been misinterpreted or misrepresented.

The CBN “reiterates that the publication is a compilation of previously issued policies and guidelines from the Bank up to a cut-off date, typically December 31 of the relevant year.”