President Bola Ahmed Tinubu has yielded to mounting pressure and directed the Central Bank of Nigeria (CBN) to suspend the implementation of the cybersecurity levy policy, pending a review.
News About Nigeria reports that the move comes after widespread criticism from Nigerians, the Nigerian Labour Congress, and the Centre for the Promotion of Private Enterprises, who argued that the levy would exacerbate economic hardship.
The CBN issued a circular on May 6, 2024, mandating banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, amounting to 0.5% of the value of all electronic transactions.
The levy was intended to be remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
However, the policy faced intense opposition, with the Nigerian Labour Congress rejecting it outright, citing its potential to worsen economic hardship for Nigerians.
Last Thursday, the House of Representatives added its voice to the chorus of dissent, passing a motion to halt and modify the implementation of the cybersecurity levy.
The motion, moved by Kingsley Chinda, expressed concern over multiple interpretations of the CBN directive and the Cybersecurity Act and urged the CBN to withdraw its initial circular and issue a more understandable one.
According to sources close to the president, Tinubu is aware of the economic burden on Nigerians since his economic reforms began last May and is reluctant to add to the burden with more levies.
A senior presidency official, who preferred anonymity, revealed, “The President is sensitive to what Nigerians feel, and he will not want to proceed with implementing a policy that adds to the burden of the people. So, he has asked the CBN to hold off on that policy and ordered a review.”
