LAGOS, Nigeria (VOICE OF NAIJA) – The digital age has revolutionized business transactions, replacing paper-based methods with electronic payment gateways.
However, the recent introduction of a cybersecurity levy on e-transactions by the Central Bank of Nigeria (CBN) has sparked controversy among Nigerians.
In a circular issued on May 6, 2024, the CBN announced that the cybersecurity levy would be implemented for a two-week period starting from the mentioned day. This directive applies to all types of banks, including commercial, merchant, non-interest, and payment service banks.
The move aims to enhance cybersecurity measures and protect against potential threats in the digital realm. While it has generated debates, it underscores the importance of safeguarding electronic transactions in today’s interconnected world.
Voiceofnaija.ng had reported that the new cybersecurity levy does not affect 16 banking transactions which are; loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank from the levy.
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Also on the list include inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, and Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings, and deposits including transactions involving long-term investments, among others.
Listed below are five transaction levies paid for by Nigerians and the cost charged per transactions between N1,000 and N1,000,000.
1. Value Added Tax (VAT)
N0.75 is being charged on N10 transfer fee
N1.875 is being charged on the N25 transfer fee
N3.75 is being charged on N50 transfer fee.
2. Transfer fee
N10 is being charged on the transaction below N5,000
N25 is being charged on the transaction between 5,001 and N50,000
N50 is being charged on transactions above N50,000
3. Short Messaging Service (SMS)
READ ALSO: FULL LIST: Banking Transactions Not Included In CBN’s New Cybersecurity Levy
N4 is being charged on each electronic transfer notification
NB: This is only applicable to customers on eligible electronic transactions. Those who opt for e-mailing services are not charged the same.
4. Stamp duties
N50 is being charged on transactions between N10,000 and N10,000,000
5. Cybersecurity levy
N5 is charged on the transaction of N1,000
N50 is charged on the transaction of N10,000
N500 is charged on the transaction of N100,000
N5,000 is charged on the transaction of N1,000,000
N50,000 is charged on the transaction of N10,000,000