In what some referred to as the unconventional stance of attempting to tax its way out of economic morass, the Central Bank of Nigeria (CBN) has confirmed it will continue enforcing the contentious cybercrime levy of 0.005 percent.
According to the apex bank, the shall be payable on all electronic transactions as part of its updated guidelines for the 2024-2025 fiscal year.
The cybercrime levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to bolster Nigeria’s cyber security infrastructure.
The Act mandates a small percentage of fees collected from electronic transactions to be allocated towards improving cybercrime prevention and prosecution measures.
The levy has been a subject of controversy since its inception, with stakeholders debating its impact on financial transactions and its effectiveness in enhancing cybersecurity.
Under the new guidelines, which are set to take effect from the beginning of the fiscal year, the CBN has outlined that the 0.005% levy will apply to all electronic transactions conducted within the country.
This includes online payments, electronic fund transfers, and other digital financial services.
The CBN’s decision to maintain the levy comes despite criticism from various quarters, including business associations and financial institutions, who argue that the levy increases transaction costs and may be a burden on consumers and businesses.
Critics also question the transparency and accountability of how the funds collected from the levy are utilized.
In response to these concerns, the CBN has emphasized that the levy is crucial for strengthening the country’s cyber defence capabilities, which are increasingly necessary for an era of rising digital threats and cybercrime.
The bank has also committed to improving transparency and reporting on how the levy funds are spent to address concerns about its management.
