Central Bank Of Nigeria Seeks N50 Billion From Cybercrime Levy

Central Bank Of Nigeria Seeks N50 Billion From Cybercrime Levy

The Central Bank of Nigeria (CBN) is projected to generate around N50 billion by the end of 2024 from a newly introduced 0.005 percent cybersecurity levy on electronic transactions, according to economic analysts. Vincent Nwani, Head of Research at FMDQ Group Plc, stated, “The CBN is expected to raise N50 billion from the cybersecurity levy by 2024……CONTINUE READING 

Data from the Nigeria Inter-Bank Settlement System shows that electronic payments totaled approximately N987 trillion between 2022 and 2023. Applying the 0.005 percent levy to this amount suggests a revenue of about N49.35 billion.

Nwani noted that electronic payments in 2022 reached N387 trillion, generating N19.35 billion from the levy, while in 2023, the total rose to N600 trillion, resulting in N30 billion in revenue. He explained, “We saw a remarkable 55 percent increase in electronic payments, growing from N387 trillion in 2022 to N600 trillion in 2023. The projected figure for 2024 is N999.9 trillion, which could yield approximately N50 billion from the levy.”

He also highlighted a significant rise in point-of-sale (PoS) transactions, which surged by 27.85 percent from N8.39 trillion in 2022 to N10.73 trillion in 2023. The fees associated with PoS transactions amounted to N214.6 billion in 2023, attributed to a N100 charge on every N5,000 withdrawal.

“The increase in PoS transactions reflects the broader economic impact of the cashless policy on Nigerians,” Nwani added.

David Adonri, Vice Chairman of Highcap Securities, noted that the rise in electronic payments is largely driven by the CBN’s cashless policies and the naira redesign. He indicated that despite the CBN’s contractionary monetary policy, the money supply is expanding, potentially increasing electronic payments even further in 2024.

With the anticipated growth in electronic payments reaching N999 trillion, Adonri emphasized that the levy could generate as much as N50 billion for the government.

The 0.005 percent levy, established under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, applies to all electronic transactions and is designed to fund the National Cybersecurity Fund managed by the Office of the National Security Adviser. Despite initial resistance from President Bola Tinubu and the House of Representatives, who sought a review of the policy, the CBN remains committed to enforcing the levy.