CBN Set to Re-introduce Cybersecurity Levy on Electronic Transactions

The Central Bank of Nigeria (CBN) has announced plans to reintroduce and enforce the payment of the Cybersecurity Levy on electronic transactions across the country.

This was outlined in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025, released on Tuesday.

According to the document, the levy, which was initially set at 0.5% in May 2024, has now been reduced to 0.005%.

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The document stated: “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, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

This initiative aligns with the recently amended Cybercrime (Prohibition, Prevention, etc.) Act 2024, aimed at strengthening Nigeria’s cybersecurity framework. Commercial banks and financial institutions are required to deduct the levy from customers’ electronic transactions.

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Despite the new guidelines, the CBN has not yet announced when the charges will resume.

It is worth noting that the levy was first introduced in May, prompting significant backlash from Nigerians, who voiced concerns about the financial strain it imposed.

In response to widespread criticism, the CBN suspended the charges following a directive from President Bola Tinubu, who ordered a thorough review of the policy.

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