How Nigerians React to Cybersecurity Levy Imposed by the CBN

Nigerians have been in and out about the fresh directive from the Central Bank of Nigeria (CBN). This time the directive iss not about the fluctuating economy or new monetary policies, it’s about a cybersecurity levy. 

A recent circular issued by the CBN, signed by Chibuzor Efobi and Haruna Mustafa, the bank’s top officials, has outlined a new charge that will soon be part of every electronic transaction. According to the directive, a 0.5% fee, dubbed the cybersecurity levy, will be deducted from all electronic transfers to bolster the nation’s defenses against cyber threats.

Closer look at the cybersecurity levy

As detailed in the circular, starting in two weeks, all commercial, merchant, and non-interest banks, including payment service providers, are mandated to implement a 0.5% deduction from the value of every electronic transaction.

This levy aims to fund the National Cybersecurity Fund (NCF), managed by the Office of the National Security Adviser.

How citizens reacted to the news

The news has sparked a widespread reaction among Nigerians, highlighting concerns about the cumulative impact of financial charges on daily living. “Every time you think you’ve adjusted your budget to manage your expenses, another levy comes along,” shared Adaobi Okoye, a local grocery store owner. She, like many others, is evaluating how this new fee will affect her business transactions and customer pricing.

Dr. Olufunmilayo, a vocal public health advocate, took to social media to explain the real-world implications of these charges. “Imagine being charged an additional ₦500 for every ₦100,000 you transfer. It’s not just the wealthy who will feel this—it affects everyone who relies on digital transactions,” he tweeted.

Morris Monye, a financial analyst, questions the rationale behind the continuous imposition of new charges. “Why another fee? What are we securing when the basics are still so hard for many?” Monye’s sentiment echoes a broader skepticism about whether the funds collected will indeed translate into better cybersecurity or merely add to the financial burden of the average Nigerian.

Broader implications – Cybersecurity or Cyber-Surcharge?

This levy comes on the heels of other recent charges introduced by banks and regulatory bodies, increasing the financial load on consumers and businesses alike. For instance, the Federal Inland Revenue Service recently mandated a 0.375% charge on mortgage loans, and banks have resumed charges on cash deposits exceeding certain thresholds.

Critics argue that while the intention behind the cybersecurity levy might be valid, the accumulation of numerous fees could discourage the use of digital platforms, which contradicts the government’s push towards a more digital economy.