Nigeria’s central bank withdraws the controversial 0.5% cybersecurity levy
Facing public outcry from labour unions and pressure groups threatening actions, the Central Bank of Nigeria (CBN) has withdrawn its plan to impose the controversial 0.5% cybersecurity levy on electronic transactions.
This comes after the CBN issued a directive requiring all financial institutions including deposit money banks, mobile money operators, and payment service providers to charge the levy.
The collected funds would have been channelled towards the National Cybersecurity Fund, administered by the Office of the National Security Adviser. This levy was supposedly linked to the Cybercrime (Prohibition, Prevention etc) Amendment Act of 2024.
Nigeria’s banking regulator orders banks to impose a 0.5% cybersecurity levy on major transactions
Nigerians will now pay a 0.5% cybersecurity levy for every major transaction they make starting in two weeks.
On May 17th, the CBN formally reversed course, issuing a new circular that withdrew the levy implementation. The circular, signed by directors from relevant CBN departments, informs financial institutions that the initial levy plan is “hereby withdrawn.”
This move effectively ends the 0.5% cybersecurity levy for now, offering a reprieve for Nigerians. However, the future of cybersecurity funding in Nigeria remains unclear.
