CBN: Things to know about Cybersecurity levy on electronic transactions in Nigeria

Nigerians are angry at the Central Bank of Nigeria’s recently implemented 0.5% cybersecurity levy. 

The Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024, requires banks to deduct and remit a 0.5% charge on all electronic transactions. The Central Bank of Nigeria sent this directive to all banks on Monday. 

ZINGTIE emphasizes important information about the new legislation for Nigerians in this study. 

Levy on cybersecurity

Instead of 0.005%, the charge is 0.5% on all electronic transactions. 

All banks, other financial institutions, and payment service providers must impose the tax. 

According to CBN, the tax must be sent to the Office of the National Security Adviser (ONSA), which manages the National Cybersecurity Fund (NCF).

What effects does the cybersecurity levy have?

This implies that Nigerians who use electronic banking channels will pay 0.5% for each transaction. For example, a N5 cybersecurity levy will be applied to an electronic transaction of N1,000, and a N50,000 fee will be applied to a transaction of N10 million.

Transactions not subject to the cybersecurity fee

A few transactions are free from the cybersecurity charge.

The 16 transactions the Central Bank of Nigeria listed are not subject to the levy. These transactions include salary payments, loan disbursements and repayments, interbank transfers for the same customer, instructions from other financial institutions to their correspondent, bank-to-bank transfers, bank-to-CBN transfers, interbranch transfers within a bank, cheque clearing and settlements, and more.

Demand to Stop the Cybersecurity Levy

The Nigeria Labour Union and the Centre for the Promotion of Private Enterprise have demanded that the charge be suspended.

Dr. Muda Yusuf, the director of CPPE, stated that as Nigerians are already dealing with several levies, adding more will be inconsiderate.

Joe Ajaero, the NLC president, also advocated for the levy to be reversed.

He stated that imposing such a tax on electronic transactions is inexcusable without considering how it will affect workers and other disadvantaged groups in society.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.

Drop your comment in the section below, and don’t forget to share the post.