Why CBN is reintroducing the Cybersecurity Levy, changes percentage

• The Central Bank of Nigeria (CBN) has reintroduced the cybersecurity levy it abandoned in May
• The bank disclosed the levy’s reintroduction in a policy document issued on Tuesday, September 17, 2024
• CBN reduced the percentage of the levy from 0.5% to 0.005% in line with the Cybercrime Act of 2015

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has disclosed that it will continue to enforce the controversial cybercrime levy of 0.005% on all electronic transactions under its recently released guidelines for the 2024/2025 fiscal year.

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso Credit: Bloomberg/Contributor
Source: Getty Images

CBN reduces cybersecurity levy

The apex bank ditched the controversial levy after the intervention of President Bola Tinubu following public outrage.

The bank is now being reintroduced and mandated by the Cybercrime Act 2025, which aims to boost Nigeria’s security infrastructure. 

According to reports, the apex bank reduced the percentage from 0.5% to 0.005% in the new guidelines.

The Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024/2024 document released by CBN reaffirmed the bank’s commitment to this charge, requiring banks and other financial institutions to deduct the levy from all electronic transactions.

CBN gives reasons for levy

According to the reports, the revenue from the levy would be directed to a cybersecurity fund to support efforts to safeguard electronic transactions.

CBN said:

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 per cent on all electronic transactions by banks and other financial institutions, by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

The bank restates the minimum cybersecurity baseline for banks and financial institutions.

The new guidelines also reaffirm the bank’s commitment to ensuring that banks, financial institutions, and payment service providers abide by the minimum cybersecurity standards.

CBN modifies plans

They include the appointment of Chief Information Security Officers to oversee cybersecurity issues in line with the 2022 risk-based cybersecurity framework.

A circular from the apex bank dated Monday, May 6, 2024, disclosed that the deduction would start two weeks from today. 

The directive is for all types of banks - commercial, merchant, non-interest, and payment service banks. 

It applies to other financial institutions, mobile money operators, and payment service providers. 

16 transactions exempted from CBN’s Cybersecurity Levy

Legit.ng earlier reported that Nigerian banks will begin deducting a 0.5% cybersecurity levy on customers' transactions in two weeks.

This is in obedience to CBN's circular, which was issued on Monday, May 6, 2024, and directed to all commercial, merchant, non-interest, and payment service banks, among others.

Legit.ng earlier reported that the CBN governor, Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.

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Source: Legit.ng