CBN says it will continue controversial cybercrime levy at 0.005% in new guidelines

The Central Bank of Nigeria (CBN) has announced that it will continue with plans to enforce the controversial cybercrime levy at 0.005% on all electronic transactions under its new 2024-2025 fiscal year guidelines.

This levy, which has sparked debate among Nigerians, is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aimed at bolstering the nation’s cyber security infrastructure.

According to the new guidelines, the percentage has been reduced from 0.5% earlier announced in May 2024 to 0.005%.

In the recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document, the CBN reaffirmed its commitment to this charge, requiring banks and other financial institutions to deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

The document read: “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.”