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.

Nigeria’s Vice President, Kashim Shettima, has allayed fears of citizens over the tax reforms being implemented by the President Bola Tinubu administration, saying the tax reforms are targeted at revitalizing the country’s economy and not to frustrate and impoverish Nigerians.

Shettima who gave the assurance on Saturday during the close-out retreat of the Presidential Fiscal Policy and Tax Reforms Committee held at the Transcorp Hilton, Abuja, said contrary to speculations in some quarters, the reforms will benefit the country in the long run.

While addressing the audience, the Vice President who was represented by the Special Adviser to the President on General Duties (Office of The Vice President), Aliyu Moddibo Umar, said:

“We are not here to frustrate any sector of our economy but to create an administrative system that ensures the benefits of a thriving tax system for all our citizens.”

He explained that the policy thrust of the Tinubu administration’s tax reforms has taken into consideration the dynamics of the nation’s fiscal landscape which prompted the government to pause and reconsider the direction it was going.

“Our aim remains the revitalisation of revenue generation in Nigeria while sustaining an investment-friendly and globally competitive business environment,” he stated.

Shettima expressed confidence in the ability of the Tax Reforms Committee to deliver on the mandate given to them by the President, and also emphasised the significance of the task ahead.

“We are gathered today because we are transitioning from the phase of proposal in the operations of this committee’s work to the phase of implementation.

“I am confident that both the federal and state governments stand ready to ensure the effective implementation of your reform proposals, and we shall provide the institutional framework to guarantee the adoption of the consensuses of this committee, aligning them with our economic agenda,” he added.