Nigerian Banks and Fintechs to Impose 0.5% Cybersecurity Levy on Transactions
A recent directive by the Central Bank of Nigeria, has mandated banks and Fintechs to impose a 0.5% levy on electronic transactions, to bolster the country’s cybersecurity defenses.
This initiative arises amid escalating worries over cybercrime targeting financial institutions in Nigeria. Mandated by the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024, the levy seeks to raise funds for the National Cybersecurity Fund managed by the Office of the National Security Adviser.
The levy encompasses various transactions, including online payments, electronic and mobile funds transfers, point-of-sale (POS) transactions, and potentially ATM withdrawals. Nonetheless, the CBN has specified exemptions for certain categories, such as loan disbursements and repayments, salary payments, specific intra-bank and inter-bank transfers, cheque clearings, and savings deposits.
While stakeholders advocate for the levy as a crucial measure to tackle cyber threats, it has however been followed with widespread criticism from Nigerians especially those heavily dependent on digital payments. According to many, the extra 0.5% expense may dissuade cashless transactions and potentially impede efforts toward financial inclusion.
