CBN reinstates controversial cybercrime levy

The Central Bank of Nigeria has reinstated a 0.005% cybercrime levy on all electronic transactions, aimed at strengthening Nigeria’s cybersecurity framework.

The levy was initially introduced in May 2024 but faced public resistance and was subsequently suspended.

Authorized under the Cybercrime Act of 2015, the levy aims to combat online fraud and protect Nigeria’s growing digital economy.

Funds collected will be used to enhance cybersecurity measures.

The levy will be deducted directly from customer accounts during electronic transfers, sparking concerns about its impact on consumers and businesses. Critics argue it may hinder financial inclusion and impose an additional burden on customers.

The Central Bank must address concerns about the levy’s timing and ensure funds are utilized effectively to enhance cybersecurity. Alternative solutions to address revenue challenges without burdening citizens should also be considered.

The reintroduction of the levy has raised eyebrows, with many questioning its impact on Nigeria’s economy. The effectiveness of the levy in achieving its intended objectives remains to be seen.