Business
CBN Eyes N50bn from Cybercrime Levy
The Central Bank of Nigeria (CBN) aims to generate approximately N50 billion by the end of 2024 from the newly introduced 0.005% cybersecurity levy on electronic transactions. Vincent Nwani, Head of Research at FMDQ Group Plc, highlighted this projection, stating that the CBN is expected to raise around N49.35 billion based on electronic payments totaling N987 trillion between 2022 and 2023.
In detail, electronic payments in 2022 amounted to N387 trillion, generating N19.35 billion from the levy, while 2023 saw transactions soar to N600 trillion, resulting in N30 billion from the levy. With a projected total of N999.9 trillion in electronic payments for 2024, the revenue from the cybersecurity levy could reach N50 billion.
Nwani also noted a significant increase in point-of-sale (PoS) transactions, which rose by 27.85% from N8.39 trillion in 2022 to N10.73 trillion in 2023. The fees associated with PoS withdrawals amounted to N214.6 billion in 2023.
David Adonri, Vice Chairman of Highcap Securities, pointed out that the surge in electronic payments is driven by the CBN’s cashless policies. Despite a contractionary monetary policy, the money supply is expanding, which may further increase electronic payments in 2024.
The 0.005% levy, enacted under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, applies to all electronic transactions and is intended to fund the National Cybersecurity Fund managed by the Office of the National Security Adviser. Despite some initial pushback from President Bola Tinubu and the House of Representatives, the CBN remains committed to enforcing the levy.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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