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Tag: YEMI CARDOSO

  • CBN Clarifies Status of Cybersecurity Levy

    CBN Clarifies Status of Cybersecurity Levy

    The Central Bank of Nigeria (CBN) has denied reintroducing the cybersecurity levy which collection was recently suspended.

    The levy, initially mandated at 0.5 percent for banks to collect on behalf of the National Security Adviser, was put on hold following backlash from the public and a directive from the Federal Executive Council.

     

    Despite ongoing rumors suggesting the levy’s reintroduction, the CBN firmly denied these claims in its recent Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal years.

     

    In a circular issued on September 17, the CBN addressed misunderstandings surrounding its guidelines, stating that the document reflects prior policies up to December 31, 2023.

     

    The CBN reiterated that the cybersecurity levy, suspended in May 2024, is no longer applicable, and stressed the importance of accurate reporting regarding its policies. The bank encouraged stakeholders to seek clarification before disseminating information.

     

  • CBN to maintain controversial cybercrime levy amid economic hardship

    CBN to maintain controversial cybercrime levy amid economic hardship

    In what some referred to as the unconventional stance of attempting to tax its way out of economic morass, the Central Bank of Nigeria (CBN) has confirmed it will continue enforcing the contentious cybercrime levy of 0.005 percent.
    According to the apex bank, the shall be payable on all electronic transactions as part of its updated guidelines for the 2024-2025 fiscal year.
    The cybercrime levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to bolster Nigeria’s cyber security infrastructure.
    The Act mandates a small percentage of fees collected from electronic transactions to be allocated towards improving cybercrime prevention and prosecution measures.
    The levy has been a subject of controversy since its inception, with stakeholders debating its impact on financial transactions and its effectiveness in enhancing cybersecurity.
    Under the new guidelines, which are set to take effect from the beginning of the fiscal year, the CBN has outlined that the 0.005% levy will apply to all electronic transactions conducted within the country.
    This includes online payments, electronic fund transfers, and other digital financial services.
    The CBN’s decision to maintain the levy comes despite criticism from various quarters, including business associations and financial institutions, who argue that the levy increases transaction costs and may be a burden on consumers and businesses.
    Critics also question the transparency and accountability of how the funds collected from the levy are utilized.
    In response to these concerns, the CBN has emphasized that the levy is crucial for strengthening the country’s cyber defence capabilities, which are increasingly necessary for an era of rising digital threats and cybercrime.
    The bank has also committed to improving transparency and reporting on how the levy funds are spent to address concerns about its management.
  • CBN directs payment service providers to begin PoS transaction tracking

    CBN directs payment service providers to begin PoS transaction tracking

    The Central Bank of Nigeria has directed all Payment Service Providers to route all transactions from PoS terminals at merchant and agent locations through an approved CBN Payment Terminal Service Aggregator.

    The Apex Bank explains that this directive is without prejudice to whether such transaction was physical or electronic.
    It also issued a 30-day deadline requiring service providers to comply with enhanced routing guidelines for Point of Sale transactions.
    This move aims to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity.
    The apex bank, in a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department on Thursday, stated that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA.
    The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc.
    In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”
    “PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”
    This development follows the expiration of the 5th September deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission.
    Although the directive was challenged in court, the CAC recently announced that it has commenced taking drastic actions, including shutting down PoS businesses that failed to register.
    The directive on PoS business registration comes against the backdrop of frequent fraud incidents involving PoS terminals and the Central Bank of Nigeria’s plans to prevent trading in cryptocurrency or virtual currency.
    According to a report by Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023