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In a significant turnaround, the Central Bank of Nigeria (CBN) has retracted its earlier directive mandating banks to enforce a 0.5% cybersecurity levy on electronic transactions. This decision comes in response to widespread public outcry and the recent suspension of the levy by the Federal Government.
Initially announced on May 6, 2024, in a circular addressed to all deposit money banks, mobile money operators, and payment service providers, the CBN instructed the deduction of the levy to fund the National Cybersecurity Fund (NCF), administered by the Office of the National Security Adviser (ONSA).
The directive prompted vehement opposition from various quarters, including labor unions and pressure groups, citing concerns about the levy’s timing amidst escalating inflation and economic challenges.
Following suit, the Federal Government intervened, suspending the contentious cybersecurity levy, as disclosed by Information Minister Mohammed Idris on May 14, 2024.
In its latest circular dated May 17, 2024, the CBN officially rescinded its earlier directive on the implementation of the cybersecurity levy. The circular, jointly signed by Chibuzo Efobi, Director of Payments System Management Department, and Haruna Mustafa, Director of Financial Policy and Regulation Department, advised financial institutions that the initial circular is hereby withdrawn.
The retraction of the cybersecurity levy directive marks a significant development in response to public sentiment, emphasizing the importance of stakeholder engagement and policy responsiveness in financial matters affecting the Nigerian populace.
