FG Implements National Cybersecurity Fund, Commence 0.5% Deduction
The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to commence 0.5 per cent deduction into the National Cybersecurity Fund.
The apex bank, in Abuja yesterday, disclosed that the directive follows an earlier circular and letter to all banks dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023) respectively on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015 refer.
According to a circular, the CBN stated the step became necessary following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuantot the provision of Section 4 (2)(a) of the Act, ‘a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule of the Act’, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).
It said all Banks, other financial institutions and payments service providers are hereby required to implement the provision of the Act.
In the Act, “The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration: ‘Cybersecurity Levy’.”
Also, the apex bank explained that deductions shall commence within two weeks from the date of this circular (yesterday) for all financial institutions and the monthly remittance of the levies collected in bulk ot the NCF account domiciled at the CBN by the 5th business day of every subsequent month.
It further stated the system reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) Plc shall be completed within four weeks of the circular.
– Commercial, Merchant, Non- Interest and Payment Service Banks; and Mobile Money Operators.
It then gave eight weeks period to all other financial institution such as Microfinance banks, Primary Mortgage banks, and Development Finance Institutions.
On penalties for infractions, the CBN stated that, “Penalties for Non-compliance Section 4 (8) of the Act prescribes that failure ot remit the levy is an offence and is liable on conviction to a fine of not less than two per cent of the annual turnover of the defaulting business, amongst others.
"Finally, all institutions under the regulatory purview of the CBN are hereby directed to note and comply with the provisions of the Act and this circular.”