Understanding the Cybersecurity Levy: Key Points from the CBN on Electronic Transactions in Nigeria

The recent implementation of the 0.5% cybersecurity levy by the Central Bank of Nigeria has sparked controversy among Nigerians.

ICbn a notice issued to all banks on Monday, the Central Bank directed them to deduct and remit 0.5% levy on all electronic transactions in accordance with the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024.

Here are key points Nigerians should be aware of regarding the new legislation:

1. Cybersecurity Levy: The levy amounts to 0.5% on all electronic transactions and is applicable to Banks, Other Financial Institutions, and payment service providers.

2. Implications: Electronic banking users in Nigeria will be charged 0.5% per transaction. For example, a transaction of N1,000 will incur a N5 cybersecurity levy, while a N10 million transaction will attract a N50,000 charge.

3. Exemptions: Certain transactions are exempted from the cybersecurity levy. These include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, among others.

4. Call for Suspension: The Centre for the Promotion of Private Enterprise and the Nigeria Labour Union have both called for the suspension of the levy. CPPE Director, Dr. Muda Yusuf, emphasized that Nigerians are already burdened with multiple taxes, making the additional levy insensitive. NLC President, Joe Ajaero, echoed similar sentiments, stressing that the levy’s imposition without considering its impact on workers and vulnerable groups is unjustifiable.

As debates continue over the necessity and fairness of the cybersecurity levy, stakeholders are urging a reconsideration of its implementation.