The Central Bank of Nigeria (CBN) has directed deposit money banks in the country to start charging a 0.5 per cent cybersecurity levy on transactions.

The circular, issued by the Director of Payment Services, UZOMA EFOBI, was addressed to all banks and payment services operators in the country.

According to the CBN, the deductions shall be applied at the transaction origination, they will be put together and paid into the Cybersecurity Fund held by the CBN.

The apex bank warned that a defaulting institution could be fined to the tune of not less than two (2) per cent of its annual turnover.

Exempted from the levy include 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.

Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, ⁠Letters of Credits, ⁠Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments, among others.

The CBN said directed the deductions would become effective in the next two weeks.