Nigeria's central bank has announced its intention to implement a levy on domestic electronic money transfers aimed at funding cybersecurity initiatives
According to a recent circular, all banks and mobile money operators will be required to impose a levy of 0.5% on the value of electronic transfers, effective in two weeks.
The collected funds are designated to be managed by the country's security adviser's office. Non-compliance with this directive will result in a penalty equivalent to 2% of the institution's annual turnover.
This levy comes in the wake of increased scrutiny on cryptocurrency, which Nigerian officials have linked to the depreciation of the national currency, the naira. The country has witnessed a surge in crypto transactions, coinciding with the naira's decline against the dollar.
In March, Nigeria initiated legal action against Binance, the world's largest cryptocurrency exchange, and two of its executives on charges of tax evasion and money laundering. Binance's head of financial crime compliance, Tigran Gambaryan, who is a U.S. citizen, is currently detained in Nigeria.
Moreover, commercial banks recently introduced processing fees of 2% for individual cash deposits exceeding 500,000 naira and 3% for corporate transactions surpassing three million naira.
