> ## Content Index
> Fetch the complete content index at: https://www.techloy.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Nigeria's banking regulator orders banks to impose a 0.5% cybersecurity levy on major transactions
- URL: https://www.techloy.com/nigerias-banking-regulator-orders-banks-to-impose-a-0-5-percent-cybersecurity-levy-on-major-transactions/
- Published: 2024-05-07T12:33:37.000Z
- Updated: 2024-05-07T12:33:37.000Z
- Description: Nigerians will now pay a 0.5% cybersecurity levy for every major transaction they make starting in two weeks.
- Author: Henry Chikwem
- Tags: / News, / Fintech, Tech in Nigeria, / Cybersecurity

Nigerians now have to deal with more money leaving their accounts, as the country's central bank has just ordered all banks in the country to impose a 0.5% cybersecurity levy on all major transactions.

This comes after the Apex Bank released a circular on Monday, confirming that the levy would take effect two weeks from Monday, May 6, and will be imposed by all banks, including commercial, merchant, non-interest, and payment service banks.

[Nigeria’s financial regulator is halting new account openings for fintech startupsThe CBN intends to fish out fintech bank accounts linked to laundering and terrorism financing.![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2023/07/techloy-avatar-1.png)TechloyHenry Chikwem![](https://images.unsplash.com/photo-1616803140344-6682afb13cda?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wxMTc3M3wwfDF8c2VhcmNofDE3fHxiYW5rfGVufDB8fHx8MTcxNDQ3MDUxMHww&ixlib=rb-4.0.3&q=80&w=2000content/images/size/w1200)](https://www.techloy.com/nigerias-financial-regulator-is-halting-new-account-openings-for-fintech-startups/)

However, some exceptions have been made against the levy. These exceptions include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different [banks](https://www.techloy.com/nigerian-banks-social-media-kyc/) for the same customer, and intra-bank transfers between customers of the same bank.

[Nigerian banks want to use social media for KYCSocial media has emerged as a powerful tool that transcends geographical boundaries and brings people together. Beyond its role in connecting individuals, the platforms have become a valuable resource for sourcing information, improving risk management as well as enhancing customer experience. Little wonder that most foreign banks and firms are![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2023/07/techloy-avatar-1.png)TechloyYusuf Balogun![](https://images.unsplash.com/photo-1541178735493-479c1a27ed24?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wxMTc3M3wwfDF8c2VhcmNofDExOHx8YmFuayUyME5pZ2VyaWF8ZW58MHx8fHwxNjg3OTY2NjE1fDA&ixlib=rb-4.0.3&q=80&w=2000content/images/size/w1200)](https://www.techloy.com/nigerian-banks-social-media-kyc/)

Also exempted from the levy were interbank transfers, cheque clearing and settlements, letters of credit, recapitalization-related funding, savings and deposits, and transactions involving long-term investments.

The Nigerian government has backed this new development by stating that they plan to sanitize the financial sector, which is why directives like this and others in the past, such as the deduction of a 0.375% stamp duty charge on all mortgaged-backed [loans](https://www.techloy.com/moni-fintech-sme-loans-africa/) and bonds by deposit money banks, have been enforced.

## Sign up for Techloy

Techloy.com publishes information about companies, products, careers, and funding in the technology industry across emerging markets globally.

Subscribe 

Email sent! Check your inbox to complete your signup. 

No spam. Unsubscribe anytime.

With these recent developments, one might conclude that the Nigerian government's decisions are poorly timed considering the current harsh realities of the economy and the major impact such choices would have on the income of the average citizen in the country.

As of 2023, the World Bank estimated the poverty rate in the country to have reached 38.9%, with an estimated 87 million Nigerians living below the poverty line — the world's second-largest poor population after India.