The Central Bank of Nigeria (CBN) has confirmed the implementation of a controversial cybercrime levy set at 0.005 percent on all electronic transactions, as outlined in its new guidelines for the 2024-2025 fiscal year.
This was revealed in the CBN’s recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024-2025.
The levy, initially suspended due to public outcry, has now been reintroduced, albeit at a significantly reduced rate. Originally announced in May 2024 at 0.5 percent, the levy has now been lowered to 0.005 percent in the updated guidelines.
The Cybercrime (Prohibition, Prevention, etc.) Act of 2015, which established the levy, aims to strengthen the country’s cybersecurity framework. The CBN reiterated that banks and financial institutions are required to deduct this levy from all electronic transactions.
Revenue generated from the levy will be used to fund initiatives designed to protect Nigeria’s banking system from increasing cyber threats.
“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015″, the document said.
Recall that in a notice in May, the CBN mandated all banks in Nigeria to collect and remit a 0.5 percent cyber security levy to the office of the National Security Adviser.
However, amid outrage over the levy, President Bola Ahmed Tinubu ordered its suspension.