CBN reduces cybersecurity levy to 0.005% on electronic transactions

This change comes after a contentious introduction of the levy earlier this year, which faced resistance from both the Nigeria Labour Congress, Trade Union Congress, and bank customers.

According to the CBN, “the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions will continue to be enforced under the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

The levy, managed by the Office of the National Security Adviser which was introduced under the amended Cybercrime Act of 2015 and updated in 2024, is intended to support the National Cybersecurity Fund. The 0.005 percent fee will apply to all electronic transactions made by commercial, merchant, non-interest, and payment service banks, among others.

In a directive released by the CBN yesterday, certain transactions will be exempt from this levy, including wage payments, loan disbursements and repayments, as well as transfers between accounts at the same bank or between banks for the same client. The exemptions also encompass intra-bank transfers, cheque clearing and settlement, Letters of Credit, and transactions between banks and the CBN.

In May, President Bola Tinubu ordered the suspension and review of the levy due to widespread protests, and the House of Representatives called for its immediate withdrawal.

Despite the backlash, the CBN confirmed it would proceed with the levy at the revised rate as part of its monetary and exchange policy for the upcoming fiscal years.