The Central Bank of Nigeria (CBN) has listed 16 banking transactions exempted from the cybersecurity levy.
CBN in a circular on Monday, May 6, 2024, directed banks to implement a 0.5% cybersecurity levy on transactions after two weeks.
According to the circular signed by the Director, Payments System Management Department, Chibuzo Efobi and the Director, Financial Policy and Regulation Department, Haruna Mustafa, 16 banking transactions are exempted from the levy.
These are Loan disbursements and repayments, Salary payments, Intra-account transfers within the same bank or between different banks for the same customer and Intra-bank transfers between customers of the same bank.
Also exempted are other Financial Institutions instructions to their correspondent banks
Interbank placements, Banks’ transfers to CBN and vice-versa as well as Inter-branch transfers within a bank.
Other exempted transactions are Cheque clearing and settlements, Letters of Credits, Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts as well as Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
Others are Government Social Welfare Programmes transactions e.g. Pension payments, Non-profit and charitable transactions, including donations to registered non-profit organisations or charities
Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions.
Also exempted are Transactions involving 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.
The notice included all commercial banks, merchant banks, non-interest banks and payment service banks among others.
The CBN said the levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.
It stated that the deducted amount shall be reflected in the customer’s account with the narration: “Cybersecurity Levy”.