Law & Human Rights

May 9, 2024

A-Z  of the cyber security levy

A-Z  of the cyber security levy

1. Do you know that the cyber security levy is 0.5% of electronic transactions in the telecommunications industry, internet subscriptions, banking transactions, insurance, and purchase of shares/stocks. 

2. CBN has released a circular directing banks to charge the 0.5% levy for banking transactions and has equally excluded certain banking transactions from the levy.

3. These transactions include loan disbursements and repayment, salary payment, pensions, intra bank transfers between customers, interbank transfers between the same customer, payment of school fees, etc.

4. Other transactions exempted include inter branch transfers within a bank, clearing and settlement of cheques, Letters of Credit, savings and deposits on treasury bills, bonds, and Commercial Papers and donations to charity.

5. This levy is chargeable to the originator of the transactions

6.The failure to remit the levy is a crime which is punishable with a minimum of 2% of the annual turnover of the defaulting business.