Cybersecurity levy: 16 Financial institution transactions exempted from CBN’s unusual tax [LIST]

The Central Financial institution of Nigeria (CBN) has provided a checklist of 16 bank transactions that could now no longer attract the unusual cybersecurity levy.

Politics Nigeria earlier reported that the CBN, on Monday, directed all banks to delivery charging a 0.5 per cent cybersecurity levy on all digital transactions throughout the nation.

This become once contained in a circular signed by the Director, Funds Procedure Management Division, Chibuzo Efobi; and the Director, Financial Policy and Law Division, Haruna Mustafa.

The circular, which become once directed to all commercial, service provider, non-hobby, and price service banks, among others; necessary that the implementation of the levy would delivery two weeks from Monday, Would possibly possibly possibly well merely 6, 2024.

“The levy shall be applied on the point of digital switch origination, then deducted and remitted by the monetary establishment. The deducted quantity shall be mirrored in the patron’s memoir with the narration, ‘Cybersecurity Levy,’” the circular partly read.

Nevertheless, the apex bank stated the cybersecurity levy will now no longer apply to the next 16 banking transactions:

1. Loan disbursements and repayments
2. Wage payments
3. Intra-memoir transfers throughout the identical bank or between assorted banks for the identical customer
4. Intra-bank transfers between clients of the identical bank
5. Other Financial Institutions instructions to their correspondent banks
6. Interbank placements,
7. Banks’ transfers to CBN and vice-versa
8. Inter-department transfers within a bank
9. Cheque clearing and settlements
10. Letters of Credits
11. Banks’ recapitalisation-linked funding – simplest bulk funds gallop from series accounts
12. Savings and deposits, in conjunction with transactions intriguing long-timeframe investments equivalent to Treasury Bills, Bonds, and Commercial Papers.
13. Authorities Social Welfare Programmes transactions e.g. Pension payments
14. Non-earnings and charitable transactions, in conjunction with donations to registered non-earnings organisations or charities
15. Academic institutions’ transactions, in conjunction with tuition payments and various transactions intriguing schools, universities, or assorted tutorial institutions
16. Transactions intriguing bank’s inner accounts equivalent to suspense accounts, clearing accounts, earnings and loss accounts, inter-department accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.