CBN Withdraws Cybersecurity Levy Directive

The Central Bank of Nigeria (CBN) has officially rescinded its directive on the cybersecurity levy that was to be implemented by banks and other financial institutions. The initial circular, issued on May 6, 2024, mandated a 0.5% levy on electronic transactions to be remitted to the National Cybersecurity Fund (NCF), managed by the Office of the National Security Adviser (ONSA).

The policy’s announcement was met with significant public backlash, including threats of action from labor unions and criticism from pressure groups. They argued that the timing of the levy’s implementation was inconsiderate, given the ongoing cost of living crisis and rising inflation rates.

In response to the outcry, the Federal Government intervened and suspended the levy. The suspension was announced by the Information Minister, Mohammed Idris, on May 14, 2024, signaling the government’s sensitivity to the public’s concerns and economic pressures.

Following the government’s suspension, the CBN issued a new circular on May 17, 2024, officially withdrawing the previous directive. This move was communicated to all deposit money banks, mobile money operators, and payment service providers, effectively halting the levy’s implementation.