CBN Returns 0.005% Cybercrime Levy, Issues New Guidelines
The Central Bank of Nigeria (CBN) has announced the reintroduction of the controversial cybercrime levy at 0.005% on all electronic transactions.
This decision, effective for the 2024-2025 fiscal year, was confirmed in new policy guidelines issued on September 17, 2024.
The levy, initially introduced in May 2024 and then suspended due to public backlash, is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
CBN says the funds collected will be allocated to a cybersecurity fund to bolster the nation’s cyber security infrastructure.
According to the new guidelines, the percentage has been reduced from 0.5% earlier announced in May 2024 to 0.005%.
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In the recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document, the CBN reaffirmed its commitment to this charge, requiring banks and other financial institutions to deduct the levy from all electronic transactions.
The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.
“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 per cent on all electronic transactions by banks and other financial institutions, by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,”
the circular partly reads.
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The CBN’s decision follows previous plans to implement a 0.5% levy, which faced criticism and was subsequently withdrawn in May 2024.
The reintroduced 0.005% cybercrime levy is intended to support national efforts against cybercrime. Failure to remit the levy as required will result in penalties, including fines based on annual turnover.
The CBN’s guidelines ensure that the levy will be deducted at the point of electronic transfer and reflected in account statements with a specific narration.