CBN Slashes Cybersecurity Levy on Digital Transactions to 0.005%
The Central Bank of Nigeria (CBN) has announced a notable reduction in the cybersecurity levy on electronic transactions, dropping it from 0.5% to just 0.005% in its new fiscal guidelines for 2024-2025.
This decision comes on the heels of widespread criticism and opposition to the levy, which was introduced earlier this year.
The CBN clarified that this reduced levy will still be enforced, as mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015. The aim of the levy is to support the National Cybersecurity Fund, overseen by the Office of the National Security Adviser. The minuscule fee will apply to all electronic transactions processed by commercial banks, merchant banks, non-interest banks, and payment service banks.
In a directive issued on Wednesday, September 19, the CBN specified that certain transactions would be exempt from the levy. These include wage payments, loan disbursements and repayments, and transfers between accounts at the same bank or different banks for the same client. Additionally, intra-bank transfers, cheque clearing and settlement, and transactions involving Letters of Credit will not incur the fee.
The initial introduction of the levy faced backlash, prompting President Tinubu to call for its suspension and review earlier in May. The House of Representatives also voiced its concerns, demanding the immediate withdrawal of the charge. Despite the pushback, the CBN has decided to proceed with the levy, albeit at a revised and lower rate, as part of its monetary and exchange policy for the upcoming fiscal years.
