The Central Bank of Nigeria (CBN) has announced a significant reduction in the cybersecurity levy on electronic transactions, lowering it from 0.5% to 0.005% as part of its fiscal guidelines for 2024-2025.
This change comes in response to widespread criticism and opposition from various stakeholders, including the Nigeria Labour Congress, the Trade Union Congress, and bank customers.
In a statement, the CBN reaffirmed its commitment to enforcing the mandatory levy of 0.005% on all electronic transactions conducted by banks and financial institutions, as mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, which was amended earlier this year.
The levy is intended to fund the National Cybersecurity Fund, overseen by the Office of the National Security Adviser. It will apply to all electronic transactions carried out by commercial banks, merchant banks, non-interest banks, and payment service banks.
In a directive released on Wednesday, the CBN specified that certain transactions would be exempt from the levy. These exemptions include wage payments, loan disbursements and repayments, as well as transfers between accounts of the same client within the same bank or between different banks. Additional exclusions cover intra-bank transfers, cheque clearing and settlement, Letters of Credit, and transactions between banks and the CBN.
Earlier this year, President Bola Tinubu called for the suspension and review of the cybersecurity levy amid public protests, and the House of Representatives also urged for its immediate withdrawal. Despite this backlash, the CBN has decided to proceed with the revised levy as part of its monetary and exchange policy for the upcoming fiscal years.
