President Bola Tinubu has ordered a review and requested that the controversial cybersecurity levy policy be put on hold by the Central Bank of Nigeria.
This came about as a result of the House of Representatives’ resolution to request last Thursday that the CBN rescind the circular ordering all banks to start imposing a 0.5% cybersecurity tax on all electronic transactions made in the nation.
Following the guidelines outlined in the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, the CBN issued a circular on May 6, 2024, requiring all banks, mobile money providers, and payment service providers to impose a new cybersecurity charge.
The National Cybersecurity Fund, which is supervised by the Office of the National Security Adviser, will receive a levy equal to 0.5 percent of the total value of all electronic transactions, as per the Act.
The fee must be applied by financial institutions at the origination point of electronic transfers. The sum that has been withheld must be clearly indicated in client accounts with the label “Cybersecurity Levy” and sent by the financial institution.
The fee must be implemented by all financial institutions within two weeks of the circular’s release. It follows that financial institutions should start deducting the fee on May 20, 2024.
Stakeholders’ reactions to the proposed fee were mixed because it is anticipated to increase the cost of doing business in Nigeria and would impede the spread of digital transaction usage.
The circular instructing financial institutions to start implementing the 0.5% cybersecurity charge was withdrawn by members of the House of Representatives on Thursday after it was deemed to be “ambiguous.”
The action came in response to a motion made by Kingsley Chinda outlining the urgent necessity to stop and alter the cybersecurity levy’s implementation. The House states that the CBN must “issue a more understandable one” and remove the original circular.
Sunday PUNCH was informed by people familiar with Tinubu’s position on the matter that the President was conscious of the financial strain Nigerians were under since his strict economic reforms started in May of last year and that he did not want to take the chance of making matters worse by imposing additional taxes.
Punch correspondent was informed by a senior presidential official, who wished to remain anonymous, that the president is cognizant of the feelings of Nigerians. Furthermore, he won’t want to carry out the implementation of a policy that increases the workload for the populace.
“So, he has asked the CBN to hold off on that policy and ordered a review. I would have said he ordered the CBN, but that is not appropriate because the CBN is autonomous. But he has asked the CBN to hold off on it and review things again.”
