President Bola Tinubu has reportedly mandated the Central Bank of Nigeria (CBN) to suspend the implementation of a controversial cybersecurity levy which had led to public outcry, even as civil society groups threatened to embark on nationwide protests.
The order of the President,! which will also see a review of the levy, came on the heels of the decision of the Nigerian House of Representatives which asked the CBN to withdraw its circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country.
The apex bank had, on May 6, issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
Going by the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser (ONS.
In a circular issued by the bank, “financial institutions are required to apply the levy at the point of electronic transfer origination.”
“The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution.
“All financial institutions are required to start implementing the levy within two weeks from the issuance of the circular.”
The announcement of the levy was not recieved well by Nigerians with a lot of dissenting voices and opposition which has now forced Tinubu to ask for the suspension of its implementation.
According to sources in the Presidency, following a rejection of the levy by a large percentage of Nigerians and the fear of a breakdown of law and order, President Tinubu personally intervened and asked the CBN to suspend the levy pending its review.