The Central Bank of Nigeria (CBN) has withdrawn its earlier circular directing commercial banks, mobile money operators, and other financial institutions to implement the National Cybersecurity Levy.
The circular, issued May 6, 2024, with reference PSMD/DIR/PUB/LAB/017/004, mandated the institutions to collect a 0.5 percent levy on all electronic transactions.
The move was primarily informed by President Bola Ahmed Tinubu’s directive and widespread concerns raised by Nigerians.
Critics argued that the levy would be an additional burden on the populace already grappling with rising inflation. Additionally, worries were expressed about the clarity and transparency of the implementation process outlined in the initial circular.
The withdrawal of the circular is contained in a statement by Chibuzo A. Efobi, CBN’s director, Payments System Management Department, and Haruna B. Mustafa, director, Financial Policy and Regulation Department.
The new circular, titled “RE: CYBERCRIMES (PROHIBITION, PREVENTION, ETC) (AMENDMENT) ACT 2024-IMPLEMENTATION GUIDANCE ON THE COLLECTION AND REMITTANCE OF THE NATIONAL CYBERSECURITY LEVY,” simply states that the previous circular is withdrawn
The new circular suggests, however, indicated that the CBN may be re-evaluating a new approach to funding cybersecurity initiatives.