The Central Bank of Nigeria (CBN) has withdrawn its previous directive requiring banks to implement a controversial 0.5% cybersecurity levy on electronic transactions.
On May 6, the apex bank issued a circular to all commercial, merchant, non-interest, and payment service banks, as well as mobile money operators and payment service providers, instructing them to deduct the levy and remit it to the National Cybersecurity Fund (NCF), managed by the Office of the National Security Adviser (ONSA).
This decision sparked widespread outrage, with labor unions threatening action and pressure groups criticizing the timing of the levy’s implementation amid a cost-of-living crisis worsened by rising inflation. Consequently, the Federal Government suspended the controversial cybersecurity levy, as announced by Information Minister Mohammed Idris on May 14, 2024.
In a new circular dated May 17, 2024, the apex bank referred to the earlier May 6, 2024 circular and informed financial institutions that the initial directive on the implementation of the cybersecurity levy “is hereby withdrawn.”
The CBN’s latest circular on the matter was co-signed by its Director of Payments System Management Department, Chibuzo Efobi, and the Director of Financial Policy and Regulation Department, Haruna Mustafa.
SEE ALSO:Arewa Youth Confirms INEC’s Credibility Following Peter Obi’s Comments
