The Central Bank of Nigeria (CBN) has significantly reduced the cybersecurity levy on electronic transactions from 0.5% to 0.005% in its fiscal guidelines for 2024-2025.
This move comes after considerable opposition from various groups including the Nigeria Labour Congress, the Trade Union Congress, and bank customers.
In a statement issued on Wednesday, September 18, 2024, the CBN emphasized that it would continue to enforce the revised levy rate on all electronic transactions conducted by banks and financial institutions. The statement read, “The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, as stipulated by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”
The cybersecurity levy was introduced to support the National Cybersecurity Fund, which is administered by the Office of the National Security Adviser. Under the new directive, transactions exempt from the levy include wage payments, loan disbursements and repayments, and transfers between the same bank accounts. The exemption also covers intra-bank transfers, cheque clearing and settlement, Letters of Credit, and transactions between banks and the CBN.
This reduction follows widespread protests earlier in the year, leading President Bola Tinubu to order a suspension and review of the levy. Despite this backlash, the CBN has decided to continue implementing the levy at the revised rate, aligning it with its monetary and exchange policy for the upcoming fiscal years.
For further information, visit the Central Bank of Nigeria’s website or contact them directly for any queries regarding the levy adjustments.
