The recent directive from the Central Bank of Nigeria mandating banks to impose a Cybersecurity Levy on transactions has sparked discussions regarding the various levies Nigerians incur on electronic transactions.
This move, outlined in a circular issued to all commercial, merchant, non-interest, and payment service banks, signifies a concerted effort to enhance cybersecurity measures in the country’s financial sector.
While exemptions have been made for specific transaction types, the implementation of this levy highlights the importance of safeguarding electronic transactions against cyber threats.
In addition to the newly introduced cybersecurity levy, here are five other transaction levies that Nigerian consumers encounter when conducting electronic transactions, ranging from N1,000 to N1,000,000:
1. Cybersecurity Levy: Transactions totaling N1,000 incur a levy of N5. Similarly, transactions valued at N10,000 incur a levy of N50, while those amounting to N100,000 are subject to a levy of N500. Larger transactions face higher levies, with N1,000,000 transactions incurring a charge of N5,000, and N10,000,000 transactions being levied N50,000.
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2. Transfer Fee: Transfer fees are structured according to the transaction amount. For transactions below N5,000, a fee of N10 is charged. Transactions falling within the range of N5,001 to N50,000 incur a charge of N25. For transactions exceeding N50,000, a fee of N50 applies.
3. Stamp Duties: Stamp duties are applied to transactions within the range of N10,000 to N10,000,000, with a fee of N50 levied on each transaction falling within this range.
4. Short Messaging Service (SMS) Charges: For Short Messaging Service (SMS), a charge of N4 is applied to each electronic transfer notification. This fee is specifically for customers engaged in eligible electronic transactions. However, customers who opt for email notifications instead are not subject to this charge.
5. Value Added Tax (VAT): VAT is also levied on each transaction. For a N10 transfer fee, N0.75 is charged as VAT. Similarly, for a N25 transfer fee, the VAT amounts to N1.875. Finally, a N50 transfer fee incurs N3.75 in VAT charges.
These levies contribute to the overall cost of electronic transactions for Nigerian consumers, underscoring the need for transparency and efficiency in the financial sector
