The recent introduction of the 0.5 percent cybersecurity levy by the Central Bank of Nigeria has sparked controversy among Nigerians.
In a notice issued to all banks on Monday, the Central Bank of Nigeria directed them to deduct and remit a 0.5 percent levy on all electronic transactions in accordance with the Cybercrimes (prohibition, prevention, etc.) (Amendment) Act, 2024.
In this report, Obasanjonews.com highlights important information that Nigerians should be aware of regarding this new legislation.
Cybersecurity Levy
The levy amounts to 0.5 percent of all electronic transactions, not 0.005 percent.
The levy is to be implemented by all banks, other financial institutions, and payment service providers.
The Central Bank of Nigeria has stated that the levy should be remitted to the National Cybersecurity Fund (NCF), which is administered by the Office of the National Security Adviser (ONSA).
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Implications of the Cybersecurity Levy
This means that users of electronic banking channels in Nigeria will be charged 0.5 percent per transaction. For example, a transaction of N1,000 will incur a N5 cybersecurity levy, while a transaction of N10 million will incur a N50,000 charge.
Transactions Exempted from the Cybersecurity Levy
There are several transactions that are exempted from the cybersecurity levy.
The Central Bank of Nigeria has identified 16 transactions that are exempt from the levy, including loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, instructions from other financial institutions to their correspondent banks, interbank placements, transfers between banks and the Central Bank of Nigeria, inter-branch transfers within a bank, cheque clearing and settlements, and others.
Call for Suspension of the Cybersecurity Levy
The Centre for the Promotion of Private Enterprise and the Nigeria Labour Union have called for the suspension of the levy.
In a statement by the Director of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, it was stated that Nigerians are already burdened with multiple taxes, and the additional levy would be insensitive.
