Cyber ​​Security Levy: How the 0.5% National Cyber ​​Security Fund CBN for the NSA will impact deposit costs

On By Vaseline

Where this photo comes from Getty

We call this photo, Collage photo of online banking and naira notes

Banks for Nigeria will charge a 0.5 percent cyber security levy on every electronic fund transfer we make. The discharges will take effect in two weeks.

The Central Bank of Nigeria will be the highest bank to issue this directive on Monday.

Di CBN makes the announcement for a circular signed by the Director of Payment System Management, Chibuzor Efobi, and the Director of Financial Policy and Regulation, Haruna Mustafa.

In the circular addressed directly to all banks and payment services, CBN said that “the deduction and collection of the cybersecurity levy is in line with the Cybercrime Amendment Act 2024 (Prohibition, Prevention, etc.)”

CBN says the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 falls under the provision of Section 44(2)(a) of the Act, “a levy of 0.5% (0.005) equal to half a percent of the all value of electronic transactions by the company specified for the second schedule of the Act will go to the National Cybersecurity Fund (NCF), or the Office of the National Security Adviser (ONSA) to manage”

CBN explains that the directive is not just a showpiece, but a follow-up to a letter we have been writing since June 25, 2018 and October 5, 2018 about compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

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How much is 0.5 percent and which pipo e will influence?

Zero point 5 percent and less than one percent of the money you transfer to someone or a company.

E mean, say when you transfer N1,000 naira dem, remove N5.

If you transfer N10,000, remove N50

If you transfer N100,000, you will pay N500

And if you send N1,000,000 to N5,000 dem, you will be charged a cybersecurity levy.

If you transfer N10,000,000 After 50,000, you will pay.

While this charge affects everyone who makes electronic fund transfers, some transfers may not be affected.

Transfers that have no impact include;

  • Loan disbursements and repayments – If the bank wants to give you a loan or if you want to repay the bank loan, you do not have to deduct this tax.
  • Salary Payments – They are not allowed to deduct this money if they receive or pay salaries.
  • Intra-account transfers – If you transfer money from the same bank or between different banks to the same customer, you will not be affected.
  • Intrabank transfers: If you transfer to customers of the same bank, this will not affect you.
  • Inter-branch transfers – This is a transfer for the same bin, but for different branches.
  • Clearing and clearing checks – Pipo can clear checks and clear them without discharge.
  • ⁠Letters of credit and money relating to or relating to bank recapitalization financing.
  • Bulk money movements from collection accounts, savings and deposits, including transactions involving long-term investments, are not affected by the levy.
  • Education fees: such as school fees, university fees or other educational fees that do not follow.
  • Goment Social services such as pensioners do not have to pay a levy. Non-profit and charitable transactions are also exempt.

We can use money

According to CBN, all financial institutions and banks pay the money they collect in bulk from the levies to the National Cybersecurity Fund (NCF) account they use for CBN.

Usually on Friday, the fifth working day of the following month, they will pay the levies into the NCF account.

“Finally, all institutions under the CBN regulations have been directed to observe and comply with the provisions of the law and the circular.”

CBN says any company that fails to pay this levy commits an offense and upon conviction is liable to a fine of not less than 2 percent of its annual turnover per year.

CBN returns deposit

CBN is also reducing deposit fees as they direct all financial institutions to collect 2% fees (processing fees) on large deposits from May 1, 2024.

The apex bank for Nigeria will bring back fees after the temporary suspension ends on April 30, 2024.

CBN has suspended charges to encourage pipo to release money that can be transferred to the bank so that they can monitor how the money is used for the economy.

Anyway, if you want to pay more than N500,000 in cash for the bank, as an individual you will charge N10,000, and if you want to pay more than 3,000,000 as a corporate organization, the bank will charge you 90,000.

For 2019, CBN orders all banks to collect fees from customers who deposit and withdraw a lot of money.