Cybersecurity Levy: List of 16 Transactions Exempted From The New CBN Rule, You May Be Relieved To See No. 2

It is no longer strange news that the Central Bank of Nigeria (CBN) has issued a new directive ordering all banks to start charging 0.5% 'cybersecurity levy' on all transactions. However, it is important to also note that not all transactions are affected with this new directive by the Apex bank.

This post highlights 16 transactions which are exempted from this new directive. This means that any of the 16 transactions which we are going to shed more light on, won't be charged or deducted for the cybersecurity levy if performed.

Now, let's take a look at the exempted transactions below;

1. Loan Disbursement and Repayments

This means for any loan disbursment and repayment transaction, the cybersecurity levy won,t be deducted.

2. Salary Payment

Is that a smile (😊) of relief! Yes, you heard right. Salary payment! Imagine earning as much high seven figures salary and you'll still be deducted for a levy that's definitely going to take a chunk of your salary every month, that may not be welcomed right?

Well, the good news is that salary payment is also exempted from this levy.

3. Intra-account transfers within the same bank or between different banks for the same customer

In this category, it means you can send money within the same bank (i.e Zenith-Zenith) or between different banks so far the accounts are operated by same customer. This category of transactions are also exempted from the levy.

4. Intra-bank transfers between customers of the same bank

This is very simple and a little bit striking with No. 3, this means Customer A can send funds to Customer B within the same bank without being charged for the cybersecurity levy.

5. Other Financial Institutions (OFIs) instructions to their correspondent banks 

This category has to do with financial institutions and not really concerns an individual customer.

6. Interbank Placements

These are transactions performed by banks to banks (i.e Access-GTB)

7. Banks' Transfers to CBN and Vice Versa

I believe this is self-explanatory.

8. Inter-branch Transfers Within A Bank

For example, cash transfers between Polaris Bank branch in Yaba and Surulere, Lagos. 

9. Cheques Clearing and Settlements

You don't have to worry as an individual or a business entity when clearing a cheque as you won't be charged for the cybersecurity levy also.

Other transactions exempted from the cybersecurity levy include:

10. Letters of Credits (LCs)

11. Banks' Recapitilization Related Funding 

12. Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.

13. Government Social Welfare Programs transactions (i.e pension payments)

14. Non-profit and charitable transactions including donations to registered non-profit organizations and charities

15. Educational Institutions transactions (i.e, tuition payments and other educational fees)

16. Transactions involving banks' internal accounts

I hope this article was helpful! Thanks for reading.