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Five levies Nigerians pay for electronic transactions

The Central Bank of Nigeria recently mandated banks to implement a cybersecurity levy on transactions, adding to the list of levies Nigerians pay for electronic transactions. This directive has stirred discussions on social media platforms, with many expressing dissatisfaction over the increased financial burdens.

Five levies Nigerians pay for electronic transactions

In this report, we delve into the different transaction levies imposed and the corresponding deductions, shedding light on the financial implications for transactions ranging from N1,000 to N1,000,000.

Five charges Nigerians pay for electronic transactions

1. Cybersecurity Levy

A new cybersecurity levy has been introduced by the Central Bank of Nigeria. This levy is applicable to various transaction amounts and aims to bolster cybersecurity measures. The levy charges vary depending on the transaction amount, ranging from N5 for transactions of N1,000 to N50,000 for transactions of N10,000,000.

2. Transfer Fee

Another levy Nigerians encounter is the transfer fee, which banks charge for facilitating electronic transfers. This fee is structured based on transaction amounts, with charges ranging from N10 for transactions below N5,000 to N50 for transactions exceeding N50,000.

3. Stamp Duties

Stamp duties are yet another financial obligation associated with electronic transactions. Transactions falling within the range of N10,000 to N10,000,000 incur a stamp duty charge of N50.

4. Short Messaging Service (SMS) Charges

For customers receiving electronic transfer notifications via SMS, a charge of N4 is levied per notification. However, it’s important to note that customers who opt for email notifications are exempt from these charges.

5. Value Added Tax (VAT)

Value Added Tax (VAT) is also applicable to certain transaction fees. Charges vary depending on the amount, with rates ranging from N0.75 for a N10 transfer fee to N3.75 for a N50 transfer fee.

Public Reaction:

The introduction of the cybersecurity levy has sparked mixed reactions among Nigerians, particularly on social media platforms. Many express frustration over the cumulative burden of multiple transaction levies, which they argue significantly impact their finances.

As electronic transactions become increasingly prevalent, understanding the various levies and charges imposed by financial institutions is crucial for Nigerian consumers. While these levies aim to support cybersecurity measures and generate revenue, they also contribute to the overall cost of electronic transactions, prompting calls for transparency and accountability in the financial sector.

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