CBN slashes cybersecurity levy on electronic transactions

The Central Bank of Nigeria (CBN) has reduced cybersecurity levy on electronic transactions from 0.5 per cent to 0.005 percent in its new fiscal guidelines for 2024-2025.

The introduction of the levy last year, had elicited angry reactions from Nigerians, including organised labour, prompting President Bola Tinubu to order a suspension and review of the levy.

The House of Representatives also demanded its immediate withdrawal. 

However, the CBN announced that it would continue with the levy under the revised rate as part of its monetary and exchange policy for the next fiscal years.

But in a directive on Wednesday, the apex bank said, “The CBN shall continue to enforce the payment of the mandatory levy of 0.005 per cent on all electronic transactions by banks and other financial institutions, by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

The levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act 2015 amended in 2024, is set to support the National Cybersecurity Fund, administered by the Office of the National Security Adviser. The 0.005 per cent fee will be charged on all electronic transactions conducted by commercial, merchant, non-interest, and payment service banks, among others.

In the directive issued on Wednesday, certain transactions will be exempt from the levy, including wage payments, loan disbursements and repayments, and transfers between the same bank accounts or banks for the same client. 

The exclusion also covers intra-bank transfers, clearing and settlement of cheques, Letters of Credit, and transactions between banks and the CBN.

 

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