Analysts project that the Central Bank of Nigeria (CBN) will generate around N50 billion by the end of 2024 from a newly implemented 0.005 percent levy on electronic transactions. Vincent Nwani, Head of Research at FMDQ Group Plc, confirmed this, stating, “The CBN is poised to raise N50 billion from this cybersecurity levy by 2024.”
Data from the Nigeria Inter-Bank Settlement System reveals that electronic payments totaled N987 trillion between 2022 and 2023. When applying the 0.005 percent levy to this figure, the anticipated revenue is approximately N49.35 billion.
Nwani highlighted that in 2022, electronic transactions reached N387 trillion, generating N19.35 billion from the levy. In 2023, as electronic transactions grew to N600 trillion, revenue from the levy increased to N30 billion. With projections for 2024 estimating electronic payments at N999.9 trillion, the government could collect as much as N50 billion.
Additionally, Nwani noted a 27.85 percent rise in point-of-sale (PoS) transactions, climbing from N8.39 trillion in 2022 to N10.73 trillion in 2023. The N100 fee applied to every N5,000 withdrawal via PoS led to a total cost of N214.6 billion for Nigerians in 2023.
The levy, established under the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, aims to fund the National Cybersecurity Fund, despite initial resistance from some government officials.
