The bank in its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document, revealed that as part of its 2024-2025 fiscal year guidelines, reaffirmed its commitment to this charge, requiring banks and other financial institutions to deduct the levy from all electronic transactions.
Scrutinizing the document, Daily Sun observed that the percentage has been reduced from 0.5% earlier announced in May 2024 to 0.005% in the new guidelines.
The apex bank noted that the levy is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015 and added that the revenue generated from the levy supports a cybersecurity fund aimed at bolstering Nigeria’s defense against cyber threats, particularly in the banking sector. “The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015”, it said.
The CBN’s guidelines also include provisions to ensure banks, Other Financial Institutions (OFIs), and Payment Service Providers (PSPs) comply with minimum cybersecurity standards, such as appointing Chief Information Security Officers (CISOs). These requirements stem from a 2022 risk-based cybersecurity framework that targets the growing threat of cyber attacks.
It will be recalled that the introduction of the levy had sparked controversy, with critics arguing that it adds unnecessary costs to businesses and could fuel inflation. The Centre for the Promotion of Public Enterprise (CPPE) and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) had urged the government to cap the levy to mitigate its economic impact.
In response to these criticisms, the Federal government, through the Minister of Information, and the Federal House of Representatives called for a suspension of the levy pending further review.
Similarly, the CBN pulled the plug on the collection of levy, but the latest guidelines suggest that the CBN is determined to press forward with the levy despite the opposition.
An economic experts, who did not want his name printed, stated that the CBN could have released such guidelines as part of broader measures aimed at bolstering cybersecurity across financial institutions, especially given the rise in cyber attacks targeting the financial sector.
He however stated that it would be unusual for a central bank to impose such levies directly, as cybersecurity measures are generally handled through regulatory requirements or sector-specific compliance measures.
“I have looked at the guidelines too and I am a bit confused as to whether this has been reviewed thoroughly by the Federal Executive Council because the confusion could arise from how these guidelines were communicated or interpreted by different stakeholders like me.
Also, like I had said before, financial institutions, businesses, and perhaps even customers could be affected by this levy, depending on how it’s structured. Hence, further clarification from the CBN or the Federal Executive Council may be necessary to resolve the confusion surrounding the implementation of the levy”, he said.
