The Central Bank of Nigeria (CBN) has reintroduced the contentious cybercrime levy. This levy, set at 0.005% on all electronic transactions, will be enforced under the recently unveiled guidelines for the 2024-2025 fiscal year.
The cybercrime levy is part of the provisions of the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aimed at strengthening the country's cybersecurity defenses. The CBN has made it clear that the revenue from this levy will be used to fund cybersecurity measures designed to protect Nigeria’s financial infrastructure from the increasing threats of cyberattacks.
In its latest Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, the CBN explained that it would continue enforcing this levy on all electronic transactions carried out by banks and financial institutions. The levy, which was previously announced at 0.5% earlier this year, has now been reduced to 0.005% following widespread outcry from Nigerians, financial stakeholders, and industry experts.
“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, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,” read the CBN’s official statement.
The reintroduction of this levy has sparked various reactions from the public. Some citizens argue that the levy adds an additional burden to an already strained economy, particularly for small businesses and individual consumers who rely on electronic transactions for their daily activities.
On the other hand, financial experts have praised the reduction of the levy from 0.5% to 0.005%, acknowledging that the funds collected are critical for addressing the growing threat of cybercrime, which has the potential to cripple Nigeria’s banking system.
Despite this, there are calls for more transparency on how the funds from the levy will be utilized and for assurances that they will go directly towards bolstering the nation's cybersecurity infrastructure.
Banks and financial institutions have been directed to begin immediate deductions from customer accounts for all electronic transactions. The funds collected from these levies will be channeled into a dedicated cybersecurity fund aimed at providing the necessary resources to combat cybercrime threats across the financial sector.
Many industry players have expressed concerns about the implications of this levy on the costs of banking services and overall consumer trust. As the cyber threat landscape evolves, the challenge remains in balancing the need for enhanced security with the cost burden placed on the average Nigerian
The reintroduction of the cybercrime levy underscores the CBN’s commitment to cybersecurity and protecting Nigeria’s financial systems from external threats. However, the controversy surrounding the levy highlights the delicate balance that regulators must maintain between safeguarding financial integrity and ensuring public confidence in the banking system.
As the 2024-2025 fiscal year unfolds, all eyes will be on how the CBN navigates this contentious policy and the broader impact it will have on Nigeria’s financial ecosystem.
