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.
