"N50 Per N10K": Nigerians React as Breakdown Shows How Cybersecurity Levy Affects You
- Nigerians have reacted to the recent order of the CBN mandating commercial banks and others to start a 0.5% cybersecurity charge
- Netizens broke down the new charge, saying that the Nigerian banking public is burdened with too much already
- The apex bank said the new charge would begin in the next two weeks and would be applied to the originating accounts
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Nigerians have reacted to the latest directives by the Central Bank of Nigeria to commercial, merchant, and other financial institutions to begin another deduction on electronic transfers.
According to new directives from the Central Bank of Nigeria (CBN), commercial banks in Nigeria will begin charging a 0.5% cybersecurity levy on electronic transfers in the next two weeks.
Source: UGC
CBN circular reveals cybersecurity levy's starting date
A report says the CBN announced this in a circular signed by Chibuzor Efobi, the bank’s director of payment systems, and Haruna Mustafa, the director of financial regulation.
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The bank directed the circular to all commercial, merchant, and non-interest and payment service banks.
The CBN said:
“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 per cent100,000 naira500 naira200,000 naira1,000 nairaThe amount 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).”
“Deductions shall commence within two (2) weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month.
“Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”
CBN lists exempted transactions from cybersecurity levy
According to a report, the CBN said that the new levy would not affect loan disbursements and repayments, salary payments, intra-account transfers within the same bank or different banks for customers, and intra-bank transfers between customers of the same bank.
Inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credit, and Banks’ recapitalisation-related funding are unaffected by the levy. Bulk funds movements from collection accounts, savings, and deposits, including transactions involving long-term investments, among others, are also unaffected by the levy.
Nigerians react to new cybersecurity levy
The directive sparked a flurry of debate on social media, with Nigerians calling the new directive crazy.
Dr Olufunmilayo broke down the new charges and said they were unwarranted.
He said:
For those who think “this new cybersecurity levy na rich people e go affect”, let me break it down for you a little;
What it means is that:
You will be charged 500 naira extra every time you send 100,000 naira, and the bank will deduct 1,000 naira extra if you send 200,000 naira.
Another social media user, Morris Monye, questioned the new charges' rationale.
The CBN has directed all banks to impose a 0.5% cybersecurity levy on all transactions
The monies are to be remitted to the office of the National Security Adviser.
Why, please? What’s the purpose?
Another social media user said there is an excessive taxing under the Tinubu government.”
Other recently introduced bank charges
The new charge comes amid a series of new charges introduced by the banks and the CBN.
Recently, the banks announced the resumption of charges on cash deposits for individuals and corporate accounts.
The charges would be applied to cash lodgements exceeding N500,000 for individuals and N3,000 for corporate accounts.
Also, the Federal Inland Revenue Service mandated commercial banks to begin 0.375% charges on Mortgage loans.
Access, UBA, Zenith, and others to begin 0.5% cybersecurity levy
Legit.ng previously reported that the Central Bank of Nigeria has ordered financial institutions to implement a 0.5% cybersecurity levy on transactions.
A circular from the apex bank dated Monday, May 6, 2024, disclosed that the deduction would start two weeks from today.
The directive is for all types of banks - commercial, merchant, non-interest, and payment service banks.
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Source: Legit.ng
