The Central Bank of Nigeria (CBN) has rescinded its earlier directive for commercial banks, mobile money operators, and other financial institutions to implement the National Cybersecurity Levy.
The directive, issued on May 6, 2024, under reference PSMD/DIR/PUB/LAB/017/004, had mandated a 0.5 percent levy on all electronic transactions.
The CBN’s decision to withdraw the circular comes in response to widespread public concerns and a directive from President Bola Ahmed Tinubu. Critics argued that the levy would impose an additional financial burden on Nigerians already facing high inflation. There were also concerns about the lack of clarity and transparency in the implementation process of the levy.
The withdrawal was confirmed in a joint statement by Chibuzo A. Efobi, Director of the Payments System Management Department, and Haruna B. Mustafa, Director of the Financial Policy and Regulation Department at the CBN. The new circular titled “RE: CYBERCRIMES (PROHIBITION, PREVENTION, ETC) (AMENDMENT) ACT 2024 – IMPLEMENTATION GUIDANCE ON THE COLLECTION AND REMITTANCE OF THE NATIONAL CYBERSECURITY LEVY” stated that the previous directive had been withdrawn.
While the circular has been revoked, it suggests that the CBN may be considering alternative approaches to funding cybersecurity initiatives. This indicates ongoing efforts to enhance the nation’s cybersecurity without placing undue financial strain on the populace.
The initial levy aimed to bolster Nigeria’s cybersecurity defenses by generating funds through a 0.5 percent charge on electronic transactions. However, the levy faced significant opposition due to concerns over its economic impact on citizens already coping with inflation and the unclear processes surrounding its implementation.
