Business
By Anthony Isibor
FOLLOWING the enactment of the Cybercrime Act 2024, the Central Bank of Nigeria, CBN, has directed all banks, other Financial Institutions and Payments Service Providers to collect ‘a levy of 0.5% (0.005) equivalent to half percent of all electronic transactions value by businesses specified in the Second Schedule of the Act.
According to a circular that emanated from the Payments System Management Department of the CBN on Monday, the monies collected will be remitted to the National Cybersecurity Fund, NCF, which shall be administered by the Office of the National Security Adviser, ONSA.
The circular, which was a follow up to an earlier CBN circular and Letter to all Banks dated June 25, 2018 with reference number (Ret BPS/DIRIGENICIRIOS/008) and another one on October 5, 2018 with reference number (Ret: BSDDIRIGENILAB/11023) on compliance with the Cybercrimes (Prohibition, Prevention, Etc) Act 2015, also instructed all Banks, Other Financial Institutions and Payments Service Providers to implement the above provision of the Act.
The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.
According to the circular, in two weeks time or from May 20th businesses that fall under this category shall begin to receive deductions in their account with the narration: “Cybersecurity Levy
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 business day of every subsequent month.
System reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria interbank Settlement System, NIBSS, Pie shall be completed as follows:
a. Within four (4) weeks of this circular – Commercial, Merchant, Non-Interest and Payment Service Banks, and Mobile Money Operators
b. Within eight (8) weeks of this circular – all Other Financal institutions (Microfinance banks, Primary Mortgage banks, Development Finance institutions)
Exemptions- To avoid multiple application of the levy on the same transaction transfer, Appendix 1 (attached) captures transactions currently deemed eligible and are exempted from the application of the levy.
“Penalties for Non-compliance Section 44 (B) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business, amongst others.
Realnews reports that earlier in May, Nuhu Ribadu, National Security Adviser, had called for the full implementation of the Cybercrimes (Prohibition, Prevention, etc.) Amendment Act 2024, including the operationalisation of the National Cybersecurity Fund by all regulators and businesses specified in the second schedule of the Act.
In the statement signed by Zakari Mijinyawa, Head, Strategic Communication Office of the National Security Adviser, the directive was part of efforts to secure Nigeria’s Critical National Information Infrastructure, CNII, counter-terrorism and violent extremism, strengthen national security and protect its economic interests.
Recall that on July 6, 2022, Nigeria joined 66 other countries that had signed and ratified the Budapest Convention on Cybercrime to enhance international cooperation, provide a common platform and procedural tools for efficient and safe cyberspace under Section 41(2)(a) of the Cybercrime Act 2015, requiring conformity of Nigerian cybercrime and cybersecurity laws and policies with regional and international standards.
A.
Nigerian business to pay 0.5% cybersecurity levy on all electronic transactions
By Anthony Isibor
FOLLOWING the enactment of the Cybercrime Act 2024, the Central Bank of Nigeria, CBN, has directed all banks, other Financial Institutions and Payments Service Providers to collect ‘a levy of 0.5% (0.005) equivalent to half percent of all electronic transactions value by businesses specified in the Second Schedule of the Act.
According to a circular that emanated from the Payments System Management Department of the CBN on Monday, the monies collected will be remitted to the National Cybersecurity Fund, NCF, which shall be administered by the Office of the National Security Adviser, ONSA.
The circular, which was a follow up to an earlier CBN circular and Letter to all Banks dated June 25, 2018 with reference number (Ret BPS/DIRIGENICIRIOS/008) and another one on October 5, 2018 with reference number (Ret: BSDDIRIGENILAB/11023) on compliance with the Cybercrimes (Prohibition, Prevention, Etc) Act 2015, also instructed all Banks, Other Financial Institutions and Payments Service Providers to implement the above provision of the Act.
The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.
According to the circular, in two weeks time or from May 20th businesses that fall under this category shall begin to receive deductions in their account with the narration: “Cybersecurity Levy
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 business day of every subsequent month.
System reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria interbank Settlement System, NIBSS, Pie shall be completed as follows:
a. Within four (4) weeks of this circular – Commercial, Merchant, Non-Interest and Payment Service Banks, and Mobile Money Operators
b. Within eight (8) weeks of this circular – all Other Financal institutions (Microfinance banks, Primary Mortgage banks, Development Finance institutions)
Exemptions- To avoid multiple application of the levy on the same transaction transfer, Appendix 1 (attached) captures transactions currently deemed eligible and are exempted from the application of the levy.
“Penalties for Non-compliance Section 44 (B) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business, amongst others.
Realnews reports that earlier in May, Nuhu Ribadu, National Security Adviser, had called for the full implementation of the Cybercrimes (Prohibition, Prevention, etc.) Amendment Act 2024, including the operationalisation of the National Cybersecurity Fund by all regulators and businesses specified in the second schedule of the Act.
In the statement signed by Zakari Mijinyawa, Head, Strategic Communication Office of the National Security Adviser, the directive was part of efforts to secure Nigeria’s Critical National Information Infrastructure, CNII, counter-terrorism and violent extremism, strengthen national security and protect its economic interests.
Recall that on July 6, 2022, Nigeria joined 66 other countries that had signed and ratified the Budapest Convention on Cybercrime to enhance international cooperation, provide a common platform and procedural tools for efficient and safe cyberspace under Section 41(2)(a) of the Cybercrime Act 2015, requiring conformity of Nigerian cybercrime and cybersecurity laws and policies with regional and international standards.
A.
-May 07, 2024 @ 18:20 GMT|
Tags: CBN Central Bank of Nigeria Cybercrime Act 2024 Nuhu Ribadu
