In response to widespread public backlash and the suspension of the levy by the Federal Government, the Central Bank of Nigeria (CBN) has withdrawn its previous directive to banks regarding the implementation of a contentious 0.5% cybersecurity levy on electronic transactions.
The CBN’s decision to retract the circular, which was met with public outrage upon its announcement two weeks ago, was outlined in a new circular dated May 17, 2024.
This latest communication from the CBN referred to the earlier circular issued on May 6, 2024, and stated that the directive on implementing the cybersecurity levy has been officially withdrawn.
The circular was jointly signed by Chibuzo Efobi, the Director of the Payments System Management Department, and Haruna Mustafa, the Director of the Financial Policy and Regulation Department at the CBN.
In the initial circular dated May 6, 2024, the CBN instructed all deposit money banks, mobile money operators, and payment service providers to deduct the levy and remit it to the National Cybersecurity Fund (NCF), which is administered by the Office of the National Security Adviser (ONSA).
The introduction of the levy sparked widespread outcry, with labor unions threatening action and pressure groups criticizing the timing of its implementation amidst the ongoing cost of living crisis exacerbated by rising inflation.
In response to the public’s concerns, the Federal Government took action and suspended the controversial cybersecurity levy on May 14, 2024.
This decision aimed to address the grievances expressed by various stakeholders and alleviate the burden on individuals and businesses.
The retraction of the CBN’s circular regarding the cybersecurity levy signifies a shift in approach and reflects the government’s responsiveness to the concerns raised by the public.
