The Central Bank of Nigeria (CBN) aims to generate approximately N50 billion by the end of 2024 through a newly implemented 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.”
Data from the Nigeria Inter-Bank Settlement System indicates that electronic payments totaled N987 trillion between 2022 and 2023. Applying the new levy to this figure could yield around N49.35 billion.
In detail, Nwani reported that electronic payments in 2022 amounted to N387 trillion, generating N19.35 billion from the levy, while 2023 saw a surge to N600 trillion, increasing revenue to N30 billion.
“With a projected total of N999 trillion in electronic payments for 2024, the government is poised to earn about N50 billion from this levy,” he explained.
He also highlighted a notable rise in point-of-sale (PoS) transactions, which increased by 27.85 percent from N8.39 trillion in 2022 to N10.73 trillion in 2023.
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The associated costs for PoS transactions amounted to N214.6 billion in 2023 due to a N100 fee on every N5,000 withdrawal.
David Adonri, Vice Chairman of Highcap Securities, noted that the growth in electronic payments is fueled by the CBN’s cashless policies and naira redesign, indicating further expansion in 2024 despite a contractionary monetary policy.
The 0.005 percent levy was enacted under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 and applies to all electronic transactions, intended to support the National Cybersecurity Fund managed by the Office of the National Security Adviser.
