CBN-2 (1).jpg
Learn about the Central Bank of Nigeria's new 0.5% cybersecurity levy on electronic transactions. Discover the exempted banking transactions from the levy, including loan disbursements, salary payments, and more.

The Central Bank of Nigeria has instituted a new cybersecurity levy of 0.5% on electronic transactions, effective immediately. This directive, outlined in a circular signed by Chibuzo Efobi and Haruna Mustafa, aims to enhance cybersecurity measures within the banking sector.

The levy will be deducted at the point of electronic transfer origination and reflected in customers' accounts. However, amidst this directive, the circular also delineated a comprehensive list of 16 banking transactions exempted from this levy. These exemptions span various financial activities, ensuring that essential transactions remain unaffected by the levy. The exempted transactions include:
  1. Loan disbursements and repayments
  2. Salary payments
  3. Intra-account transfers within the same bank or between different banks for the same customer
  4. Intra-bank transfers between customers of the same bank
  5. Other Financial Institutions instructions to their correspondent banks
  6. Interbank placements
  7. Banks’ transfers to CBN and vice-versa
  8. Inter-branch transfers within a bank
  9. Cheque clearing and settlements
  10. Letters of Credits
  11. Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts
  12. Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers
  13. Government Social Welfare Programmes transactions e.g. Pension payments
  14. Non-profit and charitable transactions, including donations to registered non-profit organizations or charities
  15. Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
  16. Transactions involving the bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
These exemptions aim to alleviate the burden on individuals and entities engaged in vital financial activities, ensuring that essential services remain undisrupted by the newly imposed levy.