Full List: Five Levies Imposed on Nigerians for Electronic Transactions

The Central Bank of Nigeria has mandated banks in the country to impose a cybersecurity levy on electronic transactions. The implementation of this levy, as per a circular released on Monday, is set to commence in two weeks’ time.

The directive, addressed to all commercial, merchant, non-interest, and payment service banks, follows up on earlier correspondences dated June 25, 2018, and October 5, 2018, emphasizing compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

However, certain transactions are exempt from this levy, including loan disbursements and repayments, salary payments, and intra-bank transfers within the same bank or between different banks for the same customer, among others.

Social media platforms are abuzz with Nigerians expressing discontent over this new levy, citing it as an addition to the already burdensome array of charges associated with electronic transactions. Below are the five other transaction levies and the corresponding deductions for transactions ranging from N1,000 to N1,000,000:

1. Cybersecurity Levy:

• N5 on transactions of N1,000
• N50 on transactions of N10,000
• N500 on transactions of N100,000
• N5,000 on transactions of N1,000,000
• N50,000 on transactions of N10,000,000

2. Transfer Fee:

• N10 for transactions below N5,000
• N25 for transactions between N5,001 and N50,000
• N50 for transactions above N50,000

3. Stamp Duties:

• N50 on transactions between N10,000 and N10,000,000

4. Short Messaging Service (SMS) Fee:

• N4 for each electronic transfer notification (applicable to eligible electronic transactions only)

5. Value Added Tax (VAT):

• N0.75 on N10 transfer fee
• N1.875 on N25 transfer fee
• N3.75 on N50 transfer fee

These levies add to the financial burden faced by Nigerians engaging in electronic transactions, prompting concerns over the affordability and accessibility of digital financial services.