CBN Announces Return Of Highly Debated Cybersecurity Levy

CBN Announces Return Of Highly Debated Cybersecurity Levy

The Central Bank of Nigeria (CBN) has announced plans to reintroduce the controversial Cybersecurity Levy on electronic transactions in the country. This was revealed in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the Fiscal Years 2024-2025, released on Tuesday.

Naija News noted that the levy, initially set at 0.5% when first introduced in May 2024, has now been significantly reduced to 0.005% in the new guidelines.

According to the document, “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 line with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

The move aligns with the amended Cybercrime (Prohibition, Prevention, etc.) Act of 2024 and aims to strengthen Nigeria’s cybersecurity infrastructure. Banks and other financial institutions are required to deduct the levy from customers’ electronic transactions. However, the CBN has yet to set a date for when the charges will resume.

Earlier in May, the CBN had directed banks to begin deducting the cybersecurity levy, which sparked widespread criticism from Nigerians already facing economic hardships. In response to public outcry, President Bola Tinubu intervened, leading to the suspension of the charges pending a thorough review.