By Milcah Tanimu
The Central Bank of Nigeria (CBN) has reduced the cybersecurity levy on electronic transactions from 0.5% to 0.005% as part of its fiscal guidelines for 2024-2025. This adjustment comes after significant backlash from the Nigeria Labour Congress, Trade Union Congress, and bank customers when the levy was first introduced earlier this year.
Under the revised Cybercrime (Prohibition, Prevention, etc.) Act, 2015, the CBN will enforce a 0.005% levy on all electronic transactions conducted by banks and financial institutions. This fee supports the National Cybersecurity Fund, managed by the Office of the National Security Adviser. The reduced rate will apply to transactions made by commercial, merchant, non-interest, and payment service banks.
Certain transactions will be exempt from this levy, including wage payments, loan disbursements, and intra-bank transfers. The exemptions also cover transfers between accounts of the same client, cheque clearing and settlement, Letters of Credit, and transactions between banks and the CBN.
The CBN’s decision to maintain the levy at the new rate follows a suspension and review ordered by President Bola Tinubu due to widespread protests. The House of Representatives also called for the levy’s withdrawal, but the CBN has confirmed that the revised levy will remain part of its monetary and exchange policy for the coming fiscal years.
