EXPLAINER: Is it 0.5% or 0.005%? Who pays? Confusion trails new cybersecurity levy

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Following the directive by CBN to financial institutions for the implementation of the cybersecurity levy on all electronic transactions

Following the directive by the Central Bank of Nigeria to financial institutions for the implementation of the cybersecurity levy onCBN 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 .

Also, in the 2018 CBN circular, the apex bank said “the levy shall be 0.005 of the service charge from all electronic financial transactions occurring in a bank, a mobile money scheme or other payment platforms”.“It provides for 0.005% levy. It was in fact bracketed for clarity.Why is FG charging 0.5% when the law says it should charge 0.005%? 0.5% is not same as 0.005%,” he wrote.Advertisement

For instance, if a sender intends to send N50,000 to a recipient, 0.5 percent of the amount would amount to N250.Intra-account transfers within the same bank or between different banks for the same customer.Savings and deposits including transactions involving long-term investments such as treasury bills, bonds, and commercial papers.Non-profit and charitable transactions .

According to the CBN, merchant, non-interest, payment service banks, mobile money operators, microfinance banks, primary mortgage banks, and development finance institutions are financial institutions that will deduct the cybersecurity levy.

 

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