Nigeria: Central Bank of Nigeria adopted circular regarding the implementation guidance on the collection and remittance of the national cybersecurity levy

On 6 May 2024, the Central Bank of Nigeria (CBN) issued circular Ref: PSM/DIR/PUB/LAB/017/004 regarding the implementation guidance on the collection and remittance of the national cybersecurity levy. Financial institutions are required to commence deductions by 19 May 2024 and to complete system reconfigurations within specified timelines (four weeks for banks and mobile money operators and eight weeks for others). The circular outlining the implementation of a 0.5% National Cybersecurity Levy on all electronic transactions, as mandated by the Cybercrimes (Amendment) Act 2024. This levy funds the National Cybersecurity Fund (NCF) and will be applied at the point of transfer, with deductions starting within two weeks and monthly remittances due by the fifth business day of each month. Exemptions include transactions like loan disbursements and salary payments to avoid multiple levies. Non-compliance can result in fines of at least 2% of the annual turnover. All regulated institutions are required to comply with these provisions.