Tinubu bows to pressure, orders suspension of cybersecurity levy

President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to halt the implementation of the contentious cybersecurity levy policy and undergo a review.
This decision comes in the wake of the House of Representatives’ directive last Thursday, urging the CBN to retract its circular mandating all banks to impose a 0.5 per cent cybersecurity levy on electronic transactions nationwide.
On May 6, 2024, the CBN issued a circular instructing financial institutions, including banks, mobile money operators, and payment service providers, to enforce a new cybersecurity levy as outlined in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
According to this Act, a levy equivalent to 0.5 per cent of the value of all electronic transactions is to be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
Financial institutions are mandated to apply the levy at the point of electronic transfer initiation, with the deducted amount clearly stated in customer accounts under the descriptor “Cybersecurity Levy” and remitted accordingly. The implementation of this levy was scheduled to commence on May 20, 2024.
However, amidst concerns raised by stakeholders regarding the clarity and implications of the directive, President Tinubu has intervened, urging a suspension pending a thorough review. He emphasized the need to alleviate economic burdens on Nigerians, particularly in light of ongoing economic reforms.
While the House of Representatives had previously called for a withdrawal of the circular due to ambiguities and discrepancies between the CBN directive and the Cybersecurity Act’s specifications, President Tinubu’s directive underscores a commitment to ensuring clarity and fairness in policy implementation.
Presidency officials, speaking on condition of anonymity, reiterated Tinubu’s sensitivity to the economic challenges faced by Nigerians and emphasized the importance of conducting a comprehensive review to address discrepancies between the directive and existing legislation.