CBN Targets N50bn from New Cybersecurity Levy on Electronic Transactions

The Central Bank of Nigeria (CBN) is set to generate N50 billion by the end of 2024 through a newly implemented 0.005 percent cybersecurity levy on electronic transactions.

This initiative is part of the CBN's Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.

Vincent Nwani, Head of Research at FMDQ Group Plc, confirmed this revenue target, stating, "The CBN is expected to raise N50bn from the cybersecurity levy by 2024." Data from the Nigeria Inter-Bank Settlement System revealed that electronic payments reached a combined total of N987 trillion between 2022 and 2023. Applying the 0.005 percent levy to this total results in an estimated revenue of approximately N49.35 billion.

Nwani further elaborated on the growth of electronic payments, noting, “For instance, we saw a remarkable 55 percent surge in the total electronic payments, from N387 trillion in 2022 to N600tn in 2023 and the 2024 figure is projected at N999.9tn.

At 0.005 percent cyber security fees, the Nigerian government will earn N19.5 billion for 2022, N30bn for 2023; 2024 will be equivalent to N50bn [projected figure] from its citizens.”

This new levy replaces a previously imposed 0.5 percent cybersecurity levy on banks, which was suspended following public backlash.

The lower rate aims to bolster cybersecurity funding without provoking similar dissent, reflecting the CBN's efforts to enhance financial security amid rising digital transactions while balancing public acceptance.