BREAKING: CBN to reintroduce controversial cybercrime levy on electronic transactions

The Central Bank of Nigeria (CBN) has confirmed that it will continue to enforce the cybercrime levy of 0.005% on all electronic transactions under the newly released guidelines for the 2024-2025 fiscal year.

The levy, mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at enhancing Nigeria’s cybersecurity infrastructure. Initially set at 0.5% earlier in May 2024, the rate has been reduced to 0.005% in response to public debate.

According to the CBN’s **Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024-2025**, the levy will be deducted by banks and financial institutions from every electronic transaction. The revenue generated will be directed towards a cybersecurity fund, designed to protect Nigeria’s banking system from rising cyberattacks.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,” the document read.

Despite the reduction, the levy remains a topic of debate as many Nigerians express concerns about additional costs in an already challenging economic environment.