The Central Bank of Nigeria (CBN) has reduced the cybersecurity levy on electronic transactions from 0.5% to 0.005% in its fiscal guidelines for 2024-2025. This adjustment follows widespread opposition to the initial levy introduced earlier in the year, which faced resistance from the Nigeria Labour Congress, Trade Union Congress, and bank customers.
According to the CBN, "the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions will continue to be enforced, in line with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015." The levy, introduced under the 2015 Act and amended in 2024, is intended to support the National Cybersecurity Fund, which is overseen by the Office of the National Security Adviser.
The 0.005% fee will apply to electronic transactions carried out by commercial banks, merchant banks, non-interest banks, and payment service banks. However, certain transactions are exempt, including wage payments, loan disbursements and repayments, transfers between accounts belonging to the same client or bank, intra-bank transfers, cheque settlements, Letters of Credit, and transactions between banks and the CBN.
Earlier in May, President Bola Tinubu ordered a suspension and review of the levy following protests, and the House of Representatives demanded its immediate withdrawal. Despite the pushback, the CBN has decided to proceed with the levy at the revised rate, incorporating it into its monetary and exchange policies for the upcoming fiscal years.
