FG Orders CBN to Suspend Cybersecurity Levy

CBN removes cybersecurity levy circular after FG orders suspension

The controversial 0.5 percent cybersecurity fee that banks were required to charge for electronic transactions has been withdrawn by the Central Bank of Nigeria, or CBN, from its prior decree.

The public's outcry after the policy's announcement two weeks ago and the Federal Government's suspension of it last week prompted the top bank to reverse course.

The CBN ordered the levy to be deducted and sent to the Office of the National Security Adviser (ONA)-managed National Cybersecurity Fund (NCF) in an initial circular dated May 6, 2024, which was sent to all deposit money banks, mobile money operators, and payment service providers.

The idea caused a great deal of opposition, with pressure organizations criticizing the timing of the fee amid a worsening cost of living problem and labor unions threatening legal action.

The contentious tax was then put on hold by the Federal Government, as Information Minister Mohammed Idris declared on Tuesday, May 14.

Referencing the previous May 6, 2024 circular, the CBN notified financial institutions that the cybersecurity levy order is hereby rescinded in its most recent circular, dated May 17, 2024.

Director of the Payments System Management Department Chibuzo Efobi and Director of the Financial Policy and Regulation Department Haruna Mustafa co-signed the most recent circular issued by the CBN.