The Central Bank of Nigeria has significantly revised the cybersecurity levy on electronic transactions, lowering it from 0.5 percent to 0.005 percent in its latest fiscal guidelines for 2024-2025.
According to The PUNCH, this adjustment comes after widespread criticism and opposition from various groups, including the Nigeria Labour Congress Trade Union Congress and bank customers.
“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 reduced rate of 0.005 percent will be applied to transactions conducted by commercial, merchant, non-interest, and payment service banks, among others. This fee is intended to support the National Cybersecurity Fund, which is overseen by the Office of the National Security Adviser.
In its new directive issued on Wednesday, the CBN outlined specific exemptions from the levy. Transactions such as wage payments, loan disbursements and repayments, and transfers between accounts of the same client or within the same bank will not incur the fee.
Additionally, intra-bank transfers, cheque clearances, Letters of Credit, and transactions between banks and the CBN are also exempt.
This move follows President Bola Tinubu’s directive in May to suspend and review the levy due to significant public and institutional pushback.
The House of Representatives also called for its immediate retraction. Despite these protests, the CBN has decided to proceed with the levy at the revised rate, integrating it into its monetary and exchange policy for the upcoming fiscal years.
