Cybersecurity Levy and 4 Other Charges Nigerians Pay on Electric Banking Transactions

• The recent directive by the Central Bank of Nigeria to financial institutions to start charging cybersecurity levy has added to other charges on transfers
• The CBN said the implementation of the charges would begin two weeks from the date of the directive
• The addition of the cybersecurity levy has added to the multiple charges already paid by the banking public

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has mandated that banks and other financial institutions begin charging a Cybersecurity Levy on electronic transfers.

The CBN disclosed this in a circular on Monday, May 6, 2024, saying that the levy implementation would begin two weeks from the circular date.

Transactions exempted from cybersecurity levy

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The directive was issued to all commercial, merchant, non-interest, and payment service banks.

According to the circular, the directive follows up on earlier letters dated June 25, 2018, and October 5, 2018, on compliance with the Cybercrime Prohibition and Prevention Act of 2015.

However, the CBN exempted loan disbursements and repayments, intra-bank transfers within the same bank or between the same banks for the same customer, and intra-bank transfers between customers of the same bank from the levy.

Other transactions exempted from the levy include inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credit, and banks’ recapitalisation-related funding. 

Others are bulk fund movements from collection accounts, savings, deposits, and transactions involving long-term investments, among others.

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Nigerians disclosed that the latest cybersecurity levy has added to multiple charges paid for electronic transactions by the banking public.

The list of charges paid on electronic transfers

Below are some of the levies Nigerians pay on electronic transfers:

• Cybersecurity levy
• Transfer fee
• Stamp duties
• Short Messaging Service (SMS)
• Value Added Tax

Newly-introduced charges

Recently, commercial banks sent customers messages that they would resume charges on cash deposits, suspended in December 2023 due to an acute cash crunch in the country.

The apex, however, asked the banks to shelve the charges until September this year.

Also, the Federal Inland Revenue Service (FIRS) mandated banks to deduct 0.375% as stamp duty on mortgage-backed loans.

FG directs banks to deduct stamp duty on loans

Legit.ng earlier reported that the Nigerian government directed commercial banks to immediately deduct a 0.375% stamp duty charge on all mortgage-backed loans and bonds.

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Mortgaged-backed loans are facilities given by financial institutions to individuals entitled to acquire a home and repay over time with interest, while bonds are debt or securities issued by governments, municipalities, corporations, or other entities to raise capital.

The commercial banks sent messages to customers informing them of the new directive, saying that the Federal Inland Revenue Service will make the deduction.

Source: Legit.ng