Nigerians will soon face a reduced cybersecurity levy of 0.005% on all electronic transactions, as announced by the Central Bank of Nigeria (CBN).
This follows a significant backlash earlier this year when a higher rate of 0.5% was proposed in May, leading to widespread criticism from stakeholders.
The CBN outlined the reintroduction of the levy in its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024-2025.
This adjustment aligns with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015, which mandates a framework to enhance cybersecurity within the financial system.
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“Implementation of this levy is critical for addressing the rising threats of cybercrime,” the CBN stated.
The reduced rate is intended to ease the financial burden on consumers while still supporting the establishment of a more secure electronic transaction environment.
The central bank emphasized that banks and Payment Service Providers (PSPs) are required to adhere to new guidelines, including appointing Chief Information Security Officers (CISOs) to oversee compliance with cybersecurity measures.
The levy will be applied at the point of electronic transfer origination, with the amount deducted directly from customer accounts.
Certain transactions will be exempt from the levy, including loan disbursements, salary payments, intra-account transfers, and various educational and charitable transactions.
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In May, the CBN had initially introduced the 0.5% levy following the enactment of the amended Cybercrime Act. However, due to significant public outcry, the central bank withdrew the circular implementing the higher rate shortly after.
“Further to this, please be advised that the above-referenced circular is hereby withdrawn,” the CBN stated in a notice at that time. The subsequent decision to reintroduce a lower rate reflects the central bank’s efforts to balance financial security and consumer affordability in a challenging economic landscape.
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