In a bid to tackle cyber-related crimes in Nigeria, the Government passed the Cybercrime Prohibition, Prevention, etc.) Act 2015 (the “Law”) into law. Section 44 of the Law creates the Cyber Security Fund and directs the payment into it of 0.005 [%] of the value of all electronic transactions by the following businesses:
i.    GSM Service providers and all telecommunication companies;
ii.   Internet Service Providers;
iii.  Banks and other Financial Institutions;
iv.   Insurance Companies; and
v.    Nigerian Stock Exchange.

On 25th June 2018, the Central Bank of Nigeria (CBN) on the basis of the said section 44 of the Law, issued a circular on compliance with the Law to guide its implementation. The circular applies to the businesses specified in paragraphs (i) – (v) above (referred to in the circular as “Mobile Money Operators (MMOs) and other affected Payment Service Providers”). The Circular directs the specified businesses to “comply with the statutory provision for the collection and remittance of the 0.005 levy on all electronic transactions…”

The following notes guide the implementation of the circular:

  • Electronic transactions cover all financial transactions occurring in a bank or on a mobile money scheme or any other payment platform that have an accompanying service charge.
  • The levy is 0.005 of the service charge (exclusive of all tax effects) from all electronic financial transactions occurring in a bank, a mobile money scheme or other payment platforms.
  • All electronic transactions that have an accompanying service charge qualify as eligible transactions.
  • The effective date for commencement of the collection of the levy is 1st July 2018.
  • All levies imposed under the Law are to be remitted to the nominated T24 account number: 0020538861023 domiciled in the Central Bank of Nigeria.
  • Operators shall remit the levy on a monthly basis using the effective date or date of commencement of business as the base month. For this purpose, the fifth business day of every subsequent month shall be the latest date for remittance.

Collection of the Cyber Security Fund levy started on 1st July 2018; therefore the specified businesses (in paragraphs i-v above) will do well to be guided by this alert.

The circular can be accessed HERE.