Nigeria’s Central Bank Imposes Levy on Domestic Electronic Transfers for Cybersecurity Funding

According to Reuters, Nigeria’s central bank announced plans on Monday to implement a 0.5 percent levy on all domestic electronic transfers to support cybersecurity initiatives. The levy, detailed in a circular distributed to all banks and mobile money operators, is set to be enforced within the next two weeks. Financial institutions failing to adhere to the directive will incur a penalty of 2 percent of their annual turnover.

This decision comes amidst a series of regulatory actions targeting Nigeria’s financial sector, prompted by a surge in cryptocurrency transactions believed by some officials to have contributed to the depreciation of the naira against the US dollar.

In March, authorities brought charges of tax evasion and money laundering against Binance, the world’s largest cryptocurrency exchange, along with two of its executives. Last month, Nigerian commercial banks introduced processing fees for large cash deposits, with individuals depositing over 500,000 naira ($1,111) facing a 2 percent fee, and corporate deposits exceeding 3 million naira ($6,667) incurring a 3 percent charge.



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