President Bola Tinubu has intervened in the controversy surrounding the Central Bank of Nigeria (CBN’s) directive to implement a 0.5 per cent cybersecurity levy on all electronic transactions in the country.
In response to the House of Representatives’ call to withdraw the levy, President Tinubu has instructed the CBN to suspend its implementation and conduct a thorough review.
Sources close to the President indicate that he is keenly aware of the economic challenges facing Nigerians, especially in light of his recent economic reforms. He is cautious not to further burden the populace with additional levies.
A senior presidency official, speaking on condition of anonymity with PUNCH, stated, “The President is empathetic to the plight of Nigerians and does not want to impose policies that will worsen their situation. He has, therefore, directed the CBN to hold off on the cybersecurity levy and reassess the policy.”
The CBN had issued a circular on May 6, 2024, mandating financial institutions to implement the levy as per the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
This Act requires a levy of 0.5 per cent on all electronic transactions, with the proceeds earmarked for the National Cybersecurity Fund overseen by the Office of the National Security Adviser.
Financial institutions were given a deadline of May 20, 2024, to begin deducting the levy, with remittances to be made to the NCF account at the CBN by the fifth business day of each month.
However, the President’s intervention has put a temporary halt to this process, pending a review of the levy’s impact and necessity.
The CBN has warned of strict penalties for non-compliance, including fines of up to two per cent of annual turnover for financial institutions.
The introduction of the cybersecurity levy has sparked concerns among stakeholders, who fear it could increase the cost of doing business in Nigeria and hamper the adoption of digital transactions. The exemption of certain transactions from the levy has been outlined to prevent double taxation.
