Mobile Money Operators Urged to Enforce Cybersecurity Levy

As part of efforts to raise funds for the National Cybersecurity Fund (NCF), the Central Bank of Nigeria (CBN) has directed all Mobile Money Operators (MMOs) and Payment Service Providers (PSPs) to charge a 0.005 per cent levy on all electronic transactions. The directive became effective from July 1, 2018.

The Director, Banking and Payment System Department, Mr. Dipo Fatokun, disclosed this in a circular he signed, a copy of which was posted on CBN website. The central bank explained that payment of the fee is to be made into a Treasury Single Account (TSA) domiciled at the central bank.

The circular which was addressed to MMOs and PSPs in the country stated: “Pursuant to the provisions of Section 44 (S. 1 and 2) of the Cybercrimes (Prohibition, Prevention etc) Act 2015, all MMOs and other affected PSPs are hereby directed to comply with the statutory provision for the collection and remittance if the 0.005 levy on all electronic transactions by the businesses specified on the second schedule of the act.”

It further stated: “Effectively, all electronic financial transactions occurring in a bank, or on a mobile money scheme or any other payment platform that have an accompanying charge shall be charged the 0.005 levy. The levy shall be 0.005 of the service charge exclusive of all tax effects from all electronic financial transactions occurring on in a bank, or on a mobile money scheme or any other payment platform.

All electronic transactions, both inter and intra, that have accompanying service charge shall qualify as eligible transactions. The effective date shall be with effect from July 1 2018.”