The Central Bank of Nigeria (CBN) has announced plans to bring back the previously suspended Cybersecurity Levy on electronic transactions. This move, revealed in the newly released “Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025,” is expected to spark fresh debate among Nigerians.
The Cybersecurity Levy is part of the country’s efforts to strengthen its cybersecurity infrastructure, as outlined in the Cybercrime (Prohibition, Prevention, etc.) Act of 2015. Initially, the levy was set at 0.5% of electronic transactions, but it faced significant opposition from the public when it was first introduced in May 2024. However, the CBN has now reduced the levy to 0.005% of all electronic transactions, according to the new guidelines.
Despite the reduction, the CBN is standing firm on its decision to enforce the charge. The official document reads: “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.”
The revised levy is part of Nigeria’s strategy to build a more robust digital defense system and protect the country’s financial institutions and customers from cyber threats. Commercial banks and other financial institutions will be responsible for deducting the levy from every electronic transaction conducted by their customers.
However, while the CBN has detailed its plans to reintroduce the levy, a specific start date for the deductions has not yet been announced. Many Nigerians will recall that in May 2024, the CBN instructed banks to begin charging the levy, which led to widespread backlash due to the economic difficulties citizens were already facing. As a result of the public outcry, President Bola Tinubu ordered the suspension of the policy to allow for a thorough review.
