The Central Bank of Nigeria, CBN, has directed all banks in the country to halt with the implementation of a 0.5 per cent cybersecurity levy after President Bola Tinubu’s called for its suspension.
The withdrawal for the directive was disclosed in a circular dated May 17, 2024, and signed by Chibuzo Efobi, CBN’s director of Payment System Management, and Haruna Mustapha, the Director of the Financial Policy and Regulatory Department.
Note that on May 6, the Nigerian apex bank ordered for the implementation of a cybersecurity levy, which mandated all banks and financial institutions to charge a 0.5 per cent levy on all electronic transactions.
The imposition of this levy was severely criticised by Nigerians, leading to Tinubu’s administration to call for its suspension.
The Minister of Information and National Orientation, Muhammed Idris, had revealed the government’s intent to halt implementing the levy after the Federal Executive Council meeting which held last Tuesday.
What Does This Mean
The Central Bank of Nigeria’s suspension of the 0.5% cybersecurity levy is significant as it would have increased costs for consumers using electronic transactions, leading to a decrease in digital banking.
The suspension shows the government’s responsiveness to public concerns and President Bola Tinubu’s directive. However, it also points to regulatory instability, which could affect investor confidence.
Additionally, the decision raises questions about how Nigeria will now fund crucial cybersecurity efforts.
Bottom Line
The Central Bank of Nigeria’s suspension of the cybersecurity levy highlights the government’s responsiveness to the public outrage and criticism but it also broaches concerns about regulatory stability and funding for crucial cybersecurity measures.
