CBN Orders Banks to Halt 0.5% Cybersecurity Fees.
Headline Options
- CBN Halts 0.5% Cybersecurity Levy on Electronic Transactions
- Central Bank of Nigeria Suspends Cybersecurity Charges for Banks
- CBN Directs Financial Institutions to Stop Implementing Cybersecurity Fees
- Nigeria’s Apex Bank Orders End to 0.5% Cybersecurity Transaction Charges
- CBN Pauses Cybersecurity Levy Following Government and Legislative Directive
Article Summary
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to stop the implementation of a 0.5% cybersecurity charge on electronic transactions. This decision follows a directive from the House of Representatives and the federal government. The announcement was made through a circular jointly signed by Chibuzor Efobi, Director of Payments System Management, and Haruna Mustafa, Director of Financial Policy and Regulation Departments at the CBN.
The original CBN directive, based on the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, mandated a levy of 0.5% on the value of all electronic transactions to be remitted to the National Cybersecurity Fund (NCF). This fund is managed by the Office of the National Security Adviser (ONSA) and is intended to support cybersecurity initiatives and counter violent extremism programs.
The Act establishes the NCF, which receives contributions from various sources, including levies on electronic transactions, grants, and appropriations by the National Assembly. Contributions to the fund are tax-deductible, incentivizing participation from stakeholders.
In response to the directive, the CBN has suspended the levy, ensuring no additional financial burden is placed on electronic transactions by businesses and individuals.
Key Points
- Directive Issued: CBN has ordered banks and financial institutions to halt the 0.5% cybersecurity levy.
- Circular Details: Jointly signed by Chibuzor Efobi and Haruna Mustafa, the circular addresses all commercial, merchant, non-interest, payment service banks, mobile money operators, and payment service providers.
- Government Influence: The suspension follows directives from the House of Representatives and the federal government.
- Initial Mandate: The levy was initially mandated by the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024.
- National Cybersecurity Fund: The NCF, managed by ONSA, is funded through these levies and other contributions to support cybersecurity and counter violent extremism efforts.
- Tax Incentives: Contributions to the fund are exempt from income tax and are tax-deductible, encouraging broader participation.
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