The Central Bank of Nigeria (CBN) has reduced the cybersecurity levy on electronic transactions from 0.5 percent to 0.005 percent in its new fiscal guidelines for 2024-2025.
This follows the controversial introduction of the charge earlier in the year, which was faced with opposition from both the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and bank customers.
“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”
The levy, established under the Cybercrime (Prohibition, Prevention, etc.) Act 2015 and revised in 2024, is intended to support the National Cybersecurity Fund, which is overseen by the Office of the National Security Adviser.
The 0.005% fee will be applied to all electronic transactions made by commercial, merchant, non-interest, and payment service banks, among others.
The CBN issued a directive on Wednesday exempting some activities from the charge, such as payroll payments, loan disbursements and repayments, and transfers between the same bank accounts or institutions for the same client.
The exclusion also includes intra-bank transfers, check clearing and settlement, letters of credit, and bank-to-CBN transactions.
President Bola Tinubu in May ordered the levy to be suspended and reviewed in response to widespread protests, and the House of Representatives urged its immediate revocation.
Despite the criticism, the CBN announced that the charge would be maintained at the amended rate as part of its monetary and currency strategy for the coming fiscal years.
