The Federal Government has made a pivotal decision to suspend the controversial cybersecurity levy on electronic banking transactions, revealing that the policy is currently under review.
The announcement was made by Nigeria’s Minister of Information and National Orientation, Mohammed Idris, during a briefing with State House Correspondents after the Federal Executive Council (FEC) meeting at the State House in Abuja on Tuesday.
In his statement, Minister Idris affirmed the government’s stance on the matter, stating, “The position of the government is that that policy has been suspended. It has been put on hold. That is the position of the government for now. It is undergoing some form of review. It was reiterated in the council (FEC meeting) yesterday. You know that today’s council (meeting) is a continuation of the council meeting of yesterday.”
He further clarified, “So, I can tell you that the cybersecurity levy has been put on hold. It is being reviewed by the government.”
The directive for the cybersecurity levy was issued by the Central Bank of Nigeria (CBN) on May 6, mandating banks, mobile money operators, and payment service providers to implement the levy as outlined in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
The levy, set at 0.5 per cent of all electronic transactions, was designated to be remitted to the National Cybersecurity Fund, managed by the Office of the National Security Adviser (NSA).
However, the implementation of the levy was met with widespread backlash and calls for its suspension.
Last week, the House of Representatives responded to public concerns by urging the CBN to withdraw the circular directing financial institutions to commence the implementation of the 0.5 per cent cybersecurity levy, citing its ambiguous nature.
As a result of these developments, the Green House mandated the CBN to retract the initial circular and issue a revised directive that is more comprehensible to all stakeholders.
This suspension marks a significant development in the ongoing discourse surrounding cybersecurity measures in Nigeria and shows the importance of stakeholder engagement and review processes in policy formulation and implementation.