The Central Bank of Nigeria (CBN) has released a list of 16 bank transactions that will be exempt from the newly introduced cybersecurity levy, following the directive to impose a 0.5% levy on electronic transactions within the country.
In a circular signed by Chibuzo Efobi, Director of the Payments System Management Department, and Haruna Mustafa, Director of the Financial Policy and Regulation Department, the CBN outlined the transactions that will not attract the cybersecurity levy.
CBN Mandates Banks to Impose 0.5% Cybersecurity Levy on Transactions
CBN Exempts 16 Bank Transactions from New Cybersecurity Levy
The exempted transactions are as follows:
- Loan disbursements and repayments
- Salary payments
- Intra-account transfers within the same bank or between different banks for the same customer
- Intra-bank transfers between customers of the same bank
- Other Financial Institutions instructions to their correspondent banks
- Interbank placements
- Banks’ transfers to CBN and vice-versa
- Inter-branch transfers within a bank
- Cheque clearing and settlements
- Letters of Credits
- Banks’ recapitalization-related funding – only bulk funds movement from collection accounts
- Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
- Government Social Welfare Programmes transactions e.g., Pension payments
- Non-profit and charitable transactions, including donations to registered non-profit organizations or charities
- Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
- 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.
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The CBN emphasized that the levy, to be implemented starting two weeks from Monday, May 6, 2024, will not be applied to the aforementioned transactions. The deducted amount from eligible transactions will be reflected in the customer’s account with the narration, ‘Cybersecurity Levy.’
For further information and updates, interested parties are advised to refer to the official communication from the Central Bank of Nigeria (CBN).
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