By Olaide Ajibola, JKNMedia Reporter
FOLLOWING the House of Representatives’ call to halt the implementation of the cybersecurity levy, President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to suspend the controversial policy and conduct a thorough review.
The directive comes in response to the CBN’s circular issued on May 6, 2024, which mandated all financial institutions to enforce a 0.5% cybersecurity levy on electronic transactions, as outlined in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
This levy was designated to be collected and remitted to the National Cybersecurity Fund under the oversight of the Office of the National Security Adviser.
Under the Act’s provisions, financial institutions were required to deduct the levy at the point of electronic transfer origination, with the deducted amount clearly indicated in customer accounts and remitted to the NCF account at the CBN. Implementation was set to begin on May 20, 2024.
However, concerns arose regarding the clarity and potential economic impact of the levy. Members of the House of Representatives deemed the initial circular ambiguous, prompting them to demand its withdrawal and the issuance of a more understandable directive from the CBN.
President Tinubu’s intervention reflects his sensitivity to the economic challenges faced by Nigerians and his reluctance to exacerbate their burden with additional levies. He has instructed the CBN to pause the levy’s enforcement and initiate a comprehensive review process.
This decision underscores the President’s commitment to ensuring that government policies are transparent, responsive to public concerns, and aligned with the country’s economic well-being.
