CBN reduces cybersecurity levy on bank transfers to 0.005%

• The decision follows opposition from the Nigeria Labour Congress, Trade Union Congress, and bank customers following the controversial levy introduced earlier this year.

• The CBN has announced that certain transactions, including wage payments, loan disbursements, and transfers for the same customer, will be exempt from the levy for the year.

• Other exemptions include intra-bank transfers, cheque clearing and settlements, Letters of Credit, bank transactions, and CBN transactions.

The Central Bank of Nigeria (CBN) has reduced the cybersecurity levy on electronic transactions from the previously contested rate of 0.5% to a new rate of 0.005% as part of its fiscal guidelines for the years 2024-2025.

This adjustment follows significant opposition from the Nigeria Labour Congress, the Trade Union Congress, and banking customers, who expressed their concerns regarding the initial implementation of the levy earlier this year.

In a statement released on Wednesday, the CBN clarified that specific transactions, including wage payments, loan disbursements and repayments, as well as transfers within or between banks for the same customer, will not be subject to the levy.

Additional exemptions encompass intra-bank transfers, cheque clearing and settlements, Letters of Credit, and transactions conducted by banks and the CBN.

The CBN affirmed that “the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions will remain in effect in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”