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 follows the earlier controversial introduction of the levy, which faced significant opposition from the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and bank customers.
The reduction follows President Bola Tinubu’s directive in May to review and suspend the original levy due to widespread protests, and a subsequent demand from the House of Representatives for its withdrawal. Despite the backlash, the CBN has decided to proceed with the levy at the new rate as part of its monetary and exchange policy for the upcoming fiscal years.
The CBN will enforce the revised mandatory levy of 0.005% on all electronic transactions conducted by banks and financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
The levy, aimed at supporting the National Cybersecurity Fund managed by the Office of the National Security Adviser, applies to transactions by commercial, merchant, non-interest, and payment service banks.
However, certain transactions will be exempt, including wage payments, loan disbursements and repayments, and transfers within the same bank or between banks for the same client. Exemptions also cover intra-bank transfers, cheque clearing and settlement, Letters of Credit, and transactions between banks and the CBN.
