CBN reintroduces cybersecurity levy on electronic transactions, makes slight adjustment

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

This is following the controversial introduction of the levy earlier in the year, which was met with criticism from Nigerians, subsequently suspended by President Bola Ahmed Tinubu in May, 2024.

But in a new development 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 a directive issued by the CBN on Wednesday, 18th of September, 2024, 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.