Making Sense of CBN’s 0.5% Cybersecurity Levy: What You Should Know

Hey there! If you’ve heard about the recent buzz around the Central Bank of Nigeria (CBN) rolling out a cybersecurity levy on transactions, you might wonder what it means for you. Let’s break it down together.

So, what’s the deal with this levy?

Well, according to a recent circular from the CBN, banks are now required to levy 0.5% (that’s 0.005 in decimal form) on the value of electronic transactions. This move aligns with the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, which aims to beef up the National Cybersecurity Fund.

How is the levy calculated?

Calculating this levy might sound daunting, but it’s not rocket science. You’ve got two options:

• Multiply your transaction amount by 0.5 and then divide by 100.
• Simply multiply your transaction amount by 0.005.

For example, if you send N10,000 to a friend, you’ll look at a cybersecurity levy of N50 using either of these methods.

What’s exempt from the levy, you ask?

Good question! The CBN has kindly provided a list of 16 banking transactions that are exempt from this levy. Loan disbursements, repayments, and salary payments are among the lucky exemptions.

So, how does this affect you?

It’s worth noting that this levy will be tacked onto your electronic transactions on top of any other fees you’re already paying to the bank. Remembering this when you’re budgeting or planning your finances is a good idea.

Wrapping it up

While this levy aims to strengthen Nigeria’s cybersecurity defenses, it’s essential for you, as a customer, to understand how it impacts your wallet. Being informed about the levy and its implications can help you navigate your financial transactions more smoothly.