Bank customers in Nigeria are facing confusion following the Central Bank of Nigeria’s (CBN) reintroduction of a 0.005% levy on all electronic transactions. This levy is part of the CBN’s 2024-2025 fiscal guidelines, which were recently released. The charge, mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at supporting a cybersecurity fund to strengthen the country’s defenses against cyber threats, particularly in the banking sector.
The levy, which was initially set at 0.5% in May 2024, has been significantly reduced to 0.005%. Despite this reduction, the reintroduction has sparked controversy, with critics arguing that it adds unnecessary costs to businesses and could exacerbate inflation. Economic groups such as the Centre for the Promotion of Public Enterprise (CPPE) and NACCIMA have previously called for the levy to be capped to mitigate its potential economic impact.
In response to these concerns, the Federal Government had previously suspended the levy, but the latest CBN guidelines indicate a renewed commitment to enforcing it. The guidelines also outline cybersecurity requirements for banks, such as the mandatory appointment of Chief Information Security Officers (CISOs), as part of broader efforts to combat rising cyberattacks in the financial sector.
While some economic experts question the rationale and communication of the levy, the CBN appears determined to move forward with its implementation, despite ongoing opposition and calls for clarification from stakeholders.
