The Central Bank of Nigeria (CBN) has announced it will continue enforcing the controversial cybercrime levy on all electronic transactions, reducing the rate to 0.005%. The levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is part of the CBN’s efforts to bolster cybersecurity across the country’s financial institutions.
Initially set at 0.5%, the levy faced widespread criticism when it was first introduced in May 2024. In response, the CBN lowered the rate in its updated guidelines for the 2024-2025 fiscal year. The revised policy mandates banks and other financial institutions to deduct 0.005% from electronic transactions, with the funds directed towards the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
Certain transactions, such as loan repayments, salary payments, and intra-account transfers, will be exempt from the levy. The CBN has warned that failure to comply with the remittance requirements could result in significant penalties, including fines amounting to 2% of a bank’s annual turnover.
The CBN maintains that the levy is crucial for strengthening the country’s defenses against cyberattacks, ensuring the safety of Nigeria’s digital financial infrastructure.
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