The Central Bank of Nigeria (CBN) has announced a significant reduction in the cybersecurity levy on electronic transactions, slashing the rate from 0.5 percent to 0.005 percent as part of its fiscal guidelines for 2024-2025.
This decision comes in response to widespread opposition from various stakeholders, including the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and bank customers, following the levy’s initial introduction earlier this year.
The levy was established under the Cybercrime (Prohibition, Prevention, etc.) Act 2015, which was amended in 2024. Its primary aim is to bolster the National Cybersecurity Fund, overseen by the Office of the National Security Adviser, to enhance Nigeria’s cybersecurity infrastructure.
The revised fee structure will apply to all electronic transactions processed by commercial, merchant, non-interest, and payment service banks.
However, in a bid to address concerns raised by the public and industry stakeholders, the CBN has outlined specific transactions that will be exempt from the levy.
These exemptions include wage payments, loan disbursements and repayments, and transfers between the same bank accounts or different banks for the same client.
Additionally, intra-bank transfers, the clearing and settlement of cheques, Letters of Credit, and transactions between banks and the CBN will not incur the levy.
The reduction of the cybersecurity levy is expected to alleviate financial pressure on consumers and businesses alike, promoting a more favorable environment for electronic transactions and digital commerce.
The CBN’s move reflects a commitment to enhancing financial inclusion while ensuring robust cybersecurity measures are in place to protect users.