Money Market
How to calculate CBN’s 0.5% (0.005) cybersecurity levy
The Central Bank of Nigeria on Monday ordered banks operating in the country to start charging a cybersecurity levy on transactions.
A circular from the apex bank further disclosed that the implementation of the level would start in two week.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund which shall be administered by the Office of the National Security Adviser,” the circular stated.
Firstly, it is important to know that 0.5% is equivalent to 0.005 (which is half of 1 percent). 0.005 is the decimal representation of 0.5%.
Hence, this entails that CBN will deduct 0.5% of any transfer made in accordance with the stipulated guidelines (see what to know)
For instance, if a customer wants to transfer the sum of N10,000. Following the new CBN directive, the customer will be charged N50 for cybersecurity levy, this is aside from bank charges or any other charges incurred on bank transactions such as VAT, etc.
To find out how to calculate what you will be charged when making a transaction, the formulas are below;
Formula one
The amount to be transferred is multiplied by 0.5 and then divided by 100. The result is what will be charged as the cybersecurity levy on that transaction.
Formula two
The amount to be transferred is multiplied by 0.005. The result is what will be charged as the cybersecurity levy on that transaction.
However, the CBN also highlighted 16 banking transactions that are exempted from the CBN’s new cybersecurity levy including Loan disbursements repayments and Salary payments, among others.
