Nigeria CBN Implements Cybersecurity Levy of 0.005% on Digital Payments

The Central Bank of Nigeria (CBN) has implemented a 0.005% cybersecurity levy on all electronic transactions. The levy, under the 2015 Cybercrime Act, aims to bolster Nigeria’s cybersecurity framework. The revised levy follows public opposition to the previously proposed 0.5%. The funds will support cyber defenses in the financial sector

The Central Bank of Nigeria (CBN) has confirmed the implementation of a 0.005% cybersecurity levy on all electronic transactions, as part of its guidelines for the 2024-2025 fiscal year. This levy, outlined in the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to strengthen Nigeria's cybersecurity infrastructure and safeguard the banking system from cyberattacks.

The new levy replaces the previously announced 0.5%, which was suspended earlier this year following public backlash. According to the CBN’s latest Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, banks and financial institutions are required to deduct this levy from all electronic transactions and remit the funds to support the nation's cybersecurity efforts.

The revenue generated will be directed towards a fund dedicated to enhancing cyber defenses in the financial sector, a critical measure amid the rising threat of cybercrime in Nigeria.

In May 2024, the CBN had mandated a 0.5% cybersecurity levy, which was subsequently paused by President Bola Ahmed Tinubu after widespread criticism. Despite the reduction to 0.005%, the CBN remains committed to enforcing the levy, emphasizing its importance in protecting Nigeria’s financial ecosystem.