By 
The Central Bank of Nigeria (CBN) is expected to generate around N50 billion by the end of 2024 through the newly introduced 0.005% cybersecurity levy on electronic transactions, according to economic analysts. This levy, aimed at supporting Nigeria’s cybersecurity infrastructure, has been projected to bring significant revenue to the government.
Vincent Nwani, Head of Research at FMDQ Group Plc, stated, “The CBN is projected to raise N50 billion from the cybersecurity levy by 2024.” This projection is based on data from the Nigeria Inter-Bank Settlement System (NIBSS), which recorded a combined total of N987 trillion in electronic payments between 2022 and 2023. When the 0.005% levy is applied, it results in approximately N49.35 billion in revenue for the government.
Breaking down the figures, Nwani explained that in 2022, electronic transactions amounted to N387 trillion, generating N19.35 billion from the levy. In 2023, this figure increased to N600 trillion, yielding N30 billion in revenue. “With a projected rise in transactions to N999.9 trillion in 2024, the Nigerian government could earn close to N50 billion from cybersecurity fees,” he added.
Nwani also noted a significant rise in point-of-sale (PoS) transactions, which increased by 27.85% from N8.39 trillion in 2022 to N10.73 trillion in 2023. He highlighted the financial impact on consumers, pointing out that PoS withdrawals cost Nigerians N214.6 billion in 2023 due to the N100 fee on every N5,000 withdrawal.
“PoS transactions cost Nigerians N214.6 billion in 2023, compared to N167.8 billion in 2022. This reflects the broader economic effects of the CBN’s cashless policy, which has seen increased reliance on electronic transactions,” Nwani said.
David Adonri, Vice Chairman of Highcap Securities, also commented on the growth in electronic payments, attributing the rise to the CBN’s cashless policy and the naira redesign. Despite the CBN’s tight monetary policies, the expanding money supply has contributed to the increase in electronic transactions. “With electronic payments expected to hit N999 trillion by 2024, the cybersecurity levy could indeed generate as much as N50 billion for the government,” Adonri said.
The 0.005% levy was introduced under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 and applies to all electronic transactions. The funds collected will support the National Cybersecurity Fund, which is managed by the Office of the National Security Adviser (ONSA).
Despite initial pushback from President Bola Tinubu and the House of Representatives, both of whom had called for a suspension and review of the levy, the CBN remains committed to enforcing the policy as part of its efforts to bolster Nigeria’s cybersecurity capabilities.
Comments