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President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to suspend the implementation of the controversial cybersecurity levy policy and initiate a review process.
This directive follows the recent decision by the House of Representatives, which urged the CBN to retract its circular mandating all banks to apply a 0.5 per cent cybersecurity levy on electronic transactions nationwide.
According to The Punch, Sources familiar with President Tinubu's stance on the matter said the president is cognizant of the economic challenges faced by Nigerians, particularly since the initiation of his stringent economic reforms last May. The President reportedly expressed reluctance to burden citizens with additional levies further.
Speaking anonymously, a senior official in the presidency to The Punch that, "The President is attuned to the sentiments of Nigerians and is unwilling to proceed with policies that exacerbate their burdens. Hence, he has directed the CBN to halt the implementation of the cybersecurity levy and conduct a review."
Another presidency official, also requesting anonymity due to lack of authorization to comment on the issue, highlighted discrepancies in the enforcement of the law, which prompted the President's intervention. "The law predates the Tinubu administration, having been enacted in 2015 under the Goodluck Jonathan administration. It is only now being enforced," the official stated.
"Tinubu was not in office when that directive was issued, and he is keen not to appear insensitive to the plight of Nigerians. Consequently, the CBN has suspended the instruction to banks to commence charging the levy. The President's intention is not to indiscriminately impose taxes on Nigerians, and thus, he has ordered a review of the law," the official added.
The CBN's circular, issued on May 6, 2024, instructed banks, mobile money operators, and payment service providers to enforce the new cybersecurity levy, in line with the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
According to the Act, a levy equivalent to 0.5 per cent of the value of electronic transactions is to be collected and remitted to the National Cybersecurity Fund, managed by the Office of the National Security Adviser. Financial institutions are required to impose the levy at the point of electronic transfer origination.
The introduction of this levy sparked diverse reactions among stakeholders, with concerns raised about its potential impact on the cost of doing business in Nigeria and its potential to impede the adoption of digital transactions.
