The apex bank however, disclosed that it had reduced the levy to 0.005 per cent, from the initial 0.5 per cent.

The introduction of the levy in May this year, had generated a major backlash from both the Nigeria Labour Congress, Trade Union Congress, and bank customers.

In its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the Fiscal Years 2024-2025, the CBN pointed out that implementation of the levy was in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.

It mandated banks and Payment Service Providers (PSPs) to adhere to the guidelines on the risk-based cybersecurity framework.

The central bank also drew the attention of Other Financial Institutions (OFIs) to an earlier framework on “Issuance of Risk-based Cybersecurity framework and Guidelines for Other Financial Institutions (OFIs)”.

The guidelines specified the minimum cybersecurity baseline to be implemented by banks, OFIs and PSPs, and mandated the appointment of a Chief Information Security Officer (CISO) to oversee cybersecurity issues.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 per cent on all electronic transactions by banks and other financial institutions, by the Cybercrime (Prohibition, Prevention, etc.) Act, 2015”, the guidelines stated.

The CBN further stated that the levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act 2015 amended in 2024, is set to support the National Cybersecurity Fund, administered by the Office of the National Security Adviser. The 0.005 per cent fee will be charged on all electronic transactions conducted by commercial, merchant, non-interest, and payment service banks, among others.

According to the Wednesday directives, certain transactions will be exempt from the levy, including wage payments, loan disbursements and repayments, and transfers between the same bank accounts or banks for the same client. The exclusion also covers intra-bank transfers, clearing and settlement of cheques, Letters of Credit, and transactions between banks and the CBN.