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The recently introduced 0.5 per cent cyber security levy by the Central Bank of Nigeria has created an uproar among Nigerians.<\/p>\n
The Central Bank of Nigeria, in a notice to all banks on Monday, directed them to deduct and remit 0.5% levy on all electronic transactions by Cybercrimes (prohibition, prevention, etc.) (Amendment) Act, 2024.<\/p>\n
In this report, IT highlights things Nigerians should know about the new legislation.<\/p>\n
Cyber security levy<\/p>\n
The levy is 0.5 per cent on all electronic transactions, not 0.005 per cent.<\/p>\n
The levy is to be implemented by all Banks, Other Financial Institutions and payment service providers.<\/p>\n
CBN stated that\u00a0the levy should be remitted<\/a>\u00a0to the National Cybersecurity Fund, NCF, administered by the Office of the National Security Adviser, ONSA.<\/p>\n What is the implication of the Cybersecurity levy?<\/p>\n This means that electronic banking channel users in Nigeria will incur 0.5 per cent per transaction. For instance, an electronic transaction of N1,000 will incur N5 cybersecurity levy, and a N10 million transaction will incur a N50,000 charge.<\/p>\n Transactions exempted from Cybersecurity levy<\/p>\n There are several transactions exempted from the cybersecurity levy.<\/p>\n The Central Bank of Nigeria attached 16\u00a0transactions that are exempted<\/a>\u00a0from the levy, including loan disbursements and repayment, salary payments, intra-account transfers within the same bank or between different banks for the same customer, other Financial Institutions instructions to their correspondent, banks Interbank placements, Banks\u2019 transfers to CBN and vice-versa, Inter-branch transfers within a bank, Cheques clearing and settlements and others.<\/p>\n Call for Suspension of Cybersecurity Levy<\/p>\n The Centre for the Promotion of Private Enterprise and the Nigeria Labour Union has\u00a0called for a suspension of the levy.<\/a><\/p>\n In a statement by CPPE Director, Dr Muda Yusuf, he said Nigerians are already grappling with multiple taxes; hence, the additional burden will be insensitive.<\/p>\n On his part, NLC president, Joe\u00a0Ajaero also called for the reversal of the levy.<\/a><\/p>\n He noted that imposing such a levy on electronic transactions without considering its implications on workers and vulnerable segments of society is unjustifiable.<\/p>\n \n","protected":false},"excerpt":{"rendered":" The recently introduced 0.5 per cent cyber security levy by the Central Bank of Nigeria<\/p>\n","protected":false},"author":1,"featured_media":39425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-43269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-frontpage"],"featured_image_urls":{"full":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",650,350,false],"thumbnail":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a-150x150.jpg",150,150,true],"medium":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a-300x162.jpg",300,162,true],"medium_large":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",640,345,false],"large":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",640,345,false],"1536x1536":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",650,350,false],"2048x2048":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",650,350,false],"elegant-magazine-featured":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",650,350,false],"elegant-magazine-medium":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",650,350,false],"elegant-magazine-medium-small":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",300,162,false],"elegant-magazine-thumbnail-small":["https:\/\/www.imotrumpeta.com\/wp-content\/uploads\/2023\/03\/tinubu-a.jpg",50,27,false]},"author_info":{"info":["Imo Trumpeta"]},"category_info":"Frontpage<\/a>","tag_info":"Frontpage","comment_count":"0","_links":{"self":[{"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/posts\/43269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43269"}],"version-history":[{"count":1,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/posts\/43269\/revisions"}],"predecessor-version":[{"id":43270,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/posts\/43269\/revisions\/43270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=\/wp\/v2\/media\/39425"}],"wp:attachment":[{"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.imotrumpeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}