The Central Bank of Nigeria (CBN) has officially confirmed the implementation of a controversial 0.005% cybercrime levy on all electronic transactions, as outlined in its newly released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal year.
This announcement follows the initial suspension of the levy earlier this year, which had sparked widespread debate across the country. The levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at strengthening Nigeria’s cybersecurity infrastructure.
The rate, initially set at 0.5% in May 2024, has been significantly reduced to 0.005% in the updated guidelines. The CBN reiterated its directive to banks and other financial institutions to deduct the levy from all electronic transactions.
Revenue generated from the levy will contribute to a cybersecurity fund dedicated to protecting Nigeria’s banking system from rising cyber threats. The CBN emphasised its commitment to enforcing the levy, stating, “The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, in line with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”
The levy was initially announced in May, when the CBN mandated all banks to collect and remit a 0.5% cybersecurity charge to the office of the National Security Adviser. However, following public backlash, President Bola Ahmed Tinubu ordered the suspension of the levy, leading to its revision.
