Nigerian Govt’s Cybersecurity Levy Projected to Yield Trillions Annually – CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has projected that the Nigerian federal government stands to generate between N3 trillion and N7.75 trillion annually through its recently introduced cybersecurity levy on electronic banking transactions.

Dr. Muda Yusuf, Director of CPPE, emphasized the potential financial windfall of the levy in a statement on Tuesday, while also calling for its suspension citing hardships faced by Nigerians.

Yusuf highlighted the substantial volume of electronic payments in Nigeria, citing data from the Nigeria Interbank Settlement System (NIBSS), which recorded N600 trillion worth of electronic transactions in 2023 alone. Applying the 0.5 percent cybersecurity levy to this amount would yield N3 trillion annually.

Furthermore, industry data from 2022 indicated electronic payments of N1550 trillion, potentially yielding N7.75 trillion from the levy. Yusuf cautioned that the levy poses a risk to the cashless policy and could drive more Nigerians towards cash transactions, urging the government to suspend its implementation pending broader engagements and review.

The recent directive from the Central Bank of Nigeria (CBN) mandates all banks to collect and remit a 0.5 percent cybersecurity levy on electronic transactions to the National Security Adviser’s office.

Yusuf urged authorities to reconsider the implementation of the levy, citing concerns over its proportionality and potential impact on the economy. He emphasized the need for a thorough review to ensure that the levy aligns with the country’s economic objectives without unduly burdening businesses and citizens.