A significant directive from President Bola Tinubu has put the implementation of the controversial cybersecurity levy by the Central Bank of Nigeria (CBN) on pause, necessitating a thorough review of the policy. This decision aligns with the stance of the House of Representatives, which, last Thursday, advocated for the CBN to retract its circular mandating all financial institutions to apply a 0.5 percent cybersecurity levy on all electronic transactions across the country.
The issue first emerged when the CBN, on May 6, 2024, acted upon the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024, instructing banks, mobile money operators, and payment service providers to start collecting a 0.5 percent levy from the value of all electronic transactions. This levy was intended to be funneled to the National Cybersecurity Fund, managed by the Office of the National Security Adviser, aiming to strengthen the nation’s defense against cyber threats.
The levy’s introduction has sparked intense debate, with concerns about its potential to elevate business costs in Nigeria and deter the growth of digital financial transactions. Reacting to these apprehensions, the House of Representatives labeled the CBN’s circular as “ambiguous” and demanded its withdrawal, seeking a more comprehensible version.
Sources close to the presidential office indicate that President Tinubu is acutely aware of the economic pressures facing Nigerians, particularly in light of his administration’s rigorous economic reforms initiated last May. A senior presidency official, who chose to remain anonymous, shared that the President’s directive for a policy reassessment stems from a commitment to not further burden the citizens with additional levies.
This move reflects the government’s adaptability to legislative recommendations and public feedback, underscoring a dedication to fostering an economic climate that supports both the growth of digital financial services and the enhancement of the country’s cybersecurity infrastructure. As the nation waits for more details on the policy review, the suspension of the cybersecurity levy highlights the administration’s prioritization of economic considerations and cybersecurity advancements.
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Last modified: May 17, 2024
