The Central Bank of Nigeria (CBN) has announced it will continue enforcing the controversial 0.005% cybercrime levy on all electronic transactions, as part of its newly released guidelines for the 2024-2025 fiscal year.
This levy, mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at improving the nation’s cybersecurity infrastructure. Although the levy was initially set at 0.5% in May 2024, it has now been reduced to 0.005%.
The revenue generated will fund measures to protect Nigeria’s banking system from the rising threat of cyberattacks. The CBN reaffirmed this charge in its “Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025,” and tasked banks and financial institutions with deducting the levy from electronic transactions.
The CBN also emphasized the importance of adhering to minimum cybersecurity standards, requiring institutions to appoint Chief Information Security Officers (CISOs) to manage cybersecurity risks, in compliance with the 2022 risk-based cybersecurity framework.
Earlier in May, the CBN mandated banks to begin deducting the cybersecurity levy, which would be administered by the office of the National Security Adviser (NSA).
However, the levy has faced significant criticism from Nigerians, who argue that it adds unnecessary costs to businesses. Groups like the Centre for the Promotion of Public Enterprise (CPPE) and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) expressed concerns, with NACCIMA calling for a cap of N500 on the levy to reduce its financial impact on the private sector.
Responding to these criticisms, the federal government and the CBN temporarily suspended the levy to review its implications.
The House of Representatives also urged for a suspension, despite having passed the amendment introducing the levy. Following this, the CBN withdrew its initial circular mandating the collection of the levy. Further review of the policy is expected before its re-implementation.
