The Central Bank of Nigeria (CBN) has confirmed that it will continue to enforce the cybercrime levy of 0.005% on all electronic transactions in the 2024-2025 fiscal year.
This levy, introduced under the Cybercrime Act of 2015, aims to enhance Nigeria’s cybersecurity infrastructure by allocating a small percentage of fees from electronic transactions to improve cybercrime prevention and prosecution.
The levy has been a subject of controversy, with stakeholders debating its impact on financial transactions and effectiveness in boosting cybersecurity.
Critics argue that it increases transaction costs and burdens consumers and businesses. Notably, business associations and financial institutions have expressed concerns about the levy’s timing, given the prevailing economic challenges.
Despite criticism, the CBN has emphasized the levy’s importance in strengthening Nigeria’s cyber defense capabilities, crucial in today’s era of rising digital threats and cybercrime.
To address concerns about transparency and accountability, the bank has committed to improving reporting on how the levy funds are spent.
Key Provisions of the Levy:
Levy Application: A 0.005% levy on all electronic transactions, including online payments and electronic fund transfers.
Implementation Process: Financial institutions will deduct the levy at the point of electronic transfer origination.
Remittance Procedure: Monthly remittances to the National Cybersecurity Fund account domiciled at the CBN.
Exemptions: 16 specific transactions, such as loan disbursements and repayments, salary payments, and intra-account transfers.
The CBN has issued guidelines for the levy’s implementation, which takes effect at the beginning of the fiscal year.
