The Olayemi Cardoso-led Central Bank of Nigeria (CBN), has announced the exemption of certain transactions from the newly introduced cybersecurity levy.
The exemptions, which were announced in a circular issued by the apex bank, aim to ensure that the country’s cybersecurity goals are met without imposing an undue burden on the financial sector.
The regulatory institution introduced a cybersecurity levy on Monday through a memo to financial institutions, stating that the government aims to invest in measures and fund initiatives that enhance national cybersecurity.
Media outlets have earlier reported that the CBN had warned against failure to comply with the regulation, noting that non-compliance would attract severe penalties, including a fine pegged at 2% of the defaulting company’s annual revenue.
Below is a comprehensive list of exempted transactions;
Loan disbursements and repayments will be exempt from the cybersecurity levy.
Salary payments, which are a critical component of household finances, will also be exempt from the levy.
Intra-account transfers within the same bank or between different banks for the same customer will be exempt from the cybersecurity levy.
The CBN also exempted intra-bank transfers between customers of the same bank, as well as Other Financial Institutions (OFIs) instructions to their correspondent banks.
Interbank placements, which are critical for liquidity management, will also be exempt from the levy.
Banks’ transfers to the CBN and vice-versa, as well as inter-branch transfers within a bank, will be exempt from the cybersecurity levy.
Cheques clearing and settlements, which are critical for commerce and trade, will also be exempt.
Letters of Credits (LCS), which are used to facilitate international trade, will be exempt from the cybersecurity levy.
Banks’ recapitalization related funding, which is critical for financial stability, will also be exempt.
Savings and deposits, including long-term investments such as Treasury Bills, Bonds, and Commercial Papers, will be exempt from the cybersecurity levy.
Corporate analysts have noted that these exemptions are expected to encourage savings and investments, which are critical for economic growth.
Meanwhile, Government Social Welfare Programs transactions, such as pension payments, will also be exempt from the cybersecurity levy.
Non-profit and charitable transactions, which are critical for social welfare, will also be exempt.
Educational Institutions transactions, including tuition payments, will be exempt from the cybersecurity levy, as government seeks to reduce the burden on students and educational institutions.
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, will be exempt from the cybersecurity levy.
