After a wave of public backlash, the Central Bank of Nigeria (CBN) has reintroduced its controversial Cybersecurity Levy with adjustments. Initially met with resistance in May 2024, the CBN has now reduced the levy from 0.5% to 0.005% on all electronic transactions—a significant reduction aimed at easing the pressure on Nigerians.
This move, outlined in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024-2025, is in line with the Cybercrime Act 2015. While CBN insists the levy will fund the National Cybersecurity Fund, many are questioning its impact on the digital economy and everyday transactions.
Despite its new, lower rate, the levy will still be applied at the point of transaction initiation and shown in bank statements under “Cybersecurity Levy.” CBN’s directive exempts essential transactions such as salary payments, loan disbursements, and educational payments, but customers should expect it for most other electronic transfers.
In a move towards transparency, the CBN has emphasized that this levy will help bolster Nigeria’s cybersecurity defenses as electronic transactions continue to rise. The banking sector, alongside Payment Service Providers (PSPs), will play a key role in ensuring compliance.
Although the levy was initially withdrawn after public pushback in May, its reintroduction at a lower rate signifies the government’s determination to tackle cybercrime. With the looming threat of fines for non-compliance, financial institutions are gearing up to meet the new requirements, while Nigerians adjust to this latest charge on their electronic transactions.
The question remains: Will this levy truly enhance Nigeria’s cybersecurity landscape, or will it simply add more financial strain on the citizens?
