The Central Bank of Nigeria (CBN) has confirmed it will continue enforcing the contentious cybercrime levy of 0.005% on all electronic transactions as part of its updated guidelines for the 2024-2025 fiscal year. This decision comes despite the ongoing economic challenges facing the country.
CBN Mandates Banks to Impose 0.5% Cybersecurity Levy on Transactions
The cybercrime levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to bolster Nigeria’s cybersecurity infrastructure. The Act mandates that a small percentage of fees collected from electronic transactions be allocated towards improving cybercrime prevention and prosecution measures.
Read Also: CBN Mandates Banks to Impose 0.5% Cybersecurity Levy on Transactions
Since its inception, the levy has been a subject of controversy, with stakeholders debating its impact on financial transactions and its effectiveness in enhancing cybersecurity. Critics argue that the levy increases transaction costs and may burden consumers and businesses, especially during times of economic hardship. Business associations and financial institutions have been vocal about their concerns, questioning the transparency and accountability of how the funds collected from the levy are utilized.
Read Also : Breaking: Gov Fubara Directs All 23 LGA Chairmen in Rivers to Contest Under APP, Details Emerged
Under the new guidelines, set to take effect at the beginning of the fiscal year, the CBN has outlined that the 0.005% levy will apply to all electronic transactions conducted within the country. This includes online payments, electronic fund transfers, and other digital financial services.
In response to the criticism, the CBN has emphasized that the levy is crucial for strengthening the country’s cyber defense capabilities, which are increasingly necessary in an era of rising digital threats and cybercrime. The bank has also committed to improving transparency and reporting on how the levy funds are spent to address concerns about its management.
As the new fiscal year approaches, the continuation of the cybercrime levy will likely remain a contentious issue, with ongoing debates about its impact on Nigeria’s economy and cybersecurity efforts.
