The Central Bank of Nigeria has directed all banks operating in the country to implement a 0.5% cybersecurity levy on transactions, as mandated by the Cybercrime Amendment Act of 2024. This levy aims to enhance cybersecurity measures and protect against cyber threats in the banking sector.
Cybersecurity refers to the measures taken to safeguard data, computer systems, networks, programs, and infrastructure from unauthorized access, damage, or theft. Initially, the cybersecurity levy was introduced under the Cybercrime Act 2015, targeting large businesses like banks, financial institutions, and listed companies, which could bear the financial burden. The levy was optional and offered as a tax deduction. However, the recent 2024 amendment, which has not been publicly disclosed, has significantly expanded the levy’s scope, making it applicable to all businesses, regardless of their size or financial capabilities.
The addition of the Cybersecurity Levy will cost N56 to transfer N5,000 and reducing the real value exchanged to N4,944

A bank account holder in Nigeria today is currently charged stamp duty, transfer fee, Value Added Tax (VAT) on transfer fee, Fee for Short Message Service (SMS) mandatory alert, the charge on ATM withdrawals from other banks’ ATMs, Naira Debit /Card Charges, Special Request for Statement of a Bill of account is around N200 and all other forms of account maintenance levies by both government and the banks.
We perceive this new development will encourage people to hoard cash at home, reduce financial inclusion, increase poverty and exacerbate the stress in getting money to do business. With inflation on the rise and Nigerians in a state of penury, an additional level will add more burden to the citizens.