The Central Bank of Nigeria (CBN) has announced the reinstatement of the cybersecurity levy, now reduced to 0.005% from the original 0.5%, for the 2024-2025 fiscal year. This levy, mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, will be applied to all electronic transactions.
According to the CBN’s latest Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, banks and financial institutions are required to collect this reduced levy from electronic transactions. The funds will contribute to a cybersecurity fund aimed at enhancing the protection of Nigeria’s banking sector against online threats.
The CBN emphasizes the importance of cybersecurity, mandating compliance with minimal standards such as appointing Chief Information Security Officers (CISOs) to oversee cybersecurity efforts, as outlined in the 2022 risk-based cybersecurity framework.
Despite the reduction in the levy rate, there has been significant public opposition, with concerns about the financial impact on individuals and businesses. The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Centre for the Promotion of Public Enterprise (CPPE) have both expressed worries about potential effects on inflation and economic growth.
The levy was previously suspended due to public backlash, but with the new reduced rate, the CBN aims to balance the need for enhanced cybersecurity with economic considerations.
