THE Federal Government has suspended the contentious cybersecurity levy on electronic banking transactions.
Nigeria’s Minister of Information and National Orientation, Mohammed Idris, made the announcement today while briefing State House Correspondents following the Federal Executive Council (FEC) meeting at the State House in Abuja.
He stated the policy is being reviewed.
“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,” the minister said.
“So, I can tell you that the cybersecurity levy has been put on hold. It is being reviewed by the government.”
On May 6, the Central Bank of Nigeria (CBN) mandated banks, mobile money operators, and payment service providers to execute the levy outlined in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
With the development, all electronic transactions were expected to incur a 0.5% fee. The funds were to be transferred to the National Cybersecurity Fund, which is managed by the Office of the National Security Advisor (NSA).
However, the move was met with uproar, sparking calls for its suspension.
Last Monday, the House of Representatives asked the CBN to rescind the circular requiring financial institutions to implement the 0.5% cybersecurity levy, calling it as “ambiguous”.
Kingsley Chinda proposed a motion to delay and modify the introduction of the cybersecurity levy, which prompted the development.
According to the Green House, the CBN would remove the initial circular and “issue a more understandable one”.
