“CBN Lowers Levy, Aims to Boost Financial Inclusion”
CBN Slashes Cybersecurity Levy
The Central Bank of Nigeria (CBN) has significantly lowered the cybersecurity levy on electronic transactions from 0.5% to 0.005%, as outlined in its latest fiscal guidelines for the 2024-2025 period. This new rate will be applied to all electronic transactions conducted by banks and other financial institutions, continuing the enforcement under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.
Response to Public and Industry Backlash
The decision to reduce the levy follows substantial criticism from various stakeholders including the Nigeria Labour Congress, Trade Union Congress, and bank customers. The initial rate of 0.5% had sparked widespread opposition due to its potential impact on financial inclusivity and the additional cost burden on consumers.
Impact on Financial Inclusion
Enhancing Financial Innovation and Access (EFInA) highlighted concerns that the original 0.5 percent levy could deter financial participation among price-sensitive consumers, thus contradicting efforts to improve financial inclusion. The organization emphasized that while funding cybersecurity is crucial, the method of imposing such a levy could inadvertently exclude vulnerable groups from formal financial systems.
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