Nigeria’s Central Bank Reimposes Controversial Cybercrime Levy on Electronic Transactions
The Central Bank of Nigeria (CBN) has confirmed the enforcement of a cybercrime levy on all electronic transactions, sparking renewed debate among Nigerians. The levy, reduced from 0.5 percent to 0.005 percent, aims to bolster the nation’s cybersecurity infrastructure and safeguard the banking system from growing cyber threats.
According to the CBN’s recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025, the levy will be mandatory for all banks and financial institutions. The revenue generated will be directed towards a cybersecurity fund, supporting measures to prevent and combat cyberattacks.
The development comes after the levy was suspended in May following public outcry. President Bola Ahmed Tinubu had ordered its suspension, citing concerns over the levy’s impact on Nigerians. However, the CBN has reaffirmed its commitment to enforcing the levy, citing the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
The Act, passed in 2015, aims to strengthen Nigeria’s cybersecurity infrastructure and combat cybercrime. The CBN’s decision to reimpose the levy is seen as a step towards achieving this goal, despite concerns over its potential impact on individuals and businesses.
The cybercrime levy is a key component of Nigeria’s efforts to combat the growing threat of cyberattacks, which have become increasingly prevalent in recent years. The levy is expected to generate significant revenue for the cybersecurity fund, which will be used to support measures to prevent and combat cyberattacks.
As the CBN moves forward with the enforcement of the levy, it remains to be seen how the decision will impact Nigerians and the country’s banking system. However, the CBN’s commitment to bolstering the nation’s cybersecurity infrastructure is a welcome step towards protecting the country’s financial system from growing cyber threats.
