The Central Bank of Nigeria mandated all banks on Monday to begin imposing a 0.5% cybersecurity tax on all electronic transactions in the country.
The apex bank stated this in a circular signed by Chibuzo Efobi, Director of Payments System Management Department, and Haruna Mustafa, Director of Financial Policy and Regulation Department.
In this article, PUNCH Online details all 16 financial transactions that are excluded from the CBN’s new cybersecurity levy.
1. Loan disbursements and repayments
2. Salary payments
3. Intra-account transfers within the same bank or between different banks for the same customer
4. Intra-bank transfers between customers of the same bank
5. Other Financial Institutions instructions to their correspondent banks
6. Interbank placements,
7. Banks’ transfers to CBN and vice-versa
8. Inter-branch transfers within a bank
9. Cheque clearing and settlements
10. Letters of Credits
11. Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts
12. Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
14. Government Social Welfare Programmes transactions e.g. Pension payments
15. Non-profit and charitable transactions, including donations to registered non-profit organisations or charities
16. Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
17. Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
