The Central Bank of Nigeria (CBN) has confirmed the enforcement of the controversial cybercrime levy at a rate of 0.005% on all electronic transactions. This levy is part of the apex bank’s recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal years. The cybercrime levy had sparked significant debate among Nigerians earlier in the year, leading to its temporary suspension by President Bola Ahmed Tinubu.
The 2024 guidelines indicate a reduction of the levy from the initial 0.5%, which was announced in May 2024, to 0.005%. Despite earlier protests, CBN reaffirmed its commitment to ensuring that banks and financial institutions deduct the levy from electronic transactions in line with the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
The revenue generated from the levy will be directed towards a cybersecurity fund aimed at strengthening Nigeria’s defense against the rising threat of cyberattacks in the banking sector. In its latest statement, CBN reiterated, “The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime Act, 2015.”
The levy was initially introduced to bolster Nigeria’s cybersecurity infrastructure. However, following public outcry, President Tinubu temporarily halted its enforcement in May, ordering a review before its eventual modification.
Banks and financial institutions are now mandated to comply with the new rate as part of the broader regulatory framework guiding financial transactions and cybersecurity measures in the country.
