In what appears to be the outcome of public outcry against the Federal Government’s decision to impose cyber security levy on all bank account holders, the Central Bank of Nigeria (CBN) has issued a fresh circular retracting its previous circular on the implementation of the national cyber security levy.
The apex bank had on May 6, 2024 directed all commercial, merchant, non-interest and payment service banks, mobile money operators and payment service providers to charge a 0.5 percent cyber security levy on all electronic transfers.
It explained that the deduction and collection of the cyber security levy followed the enactment of the Cybercrime (Prohibition, Prevention) Amendment Act 2024, adding that the charges would be remitted to the national cyber security fund and to be administered by the Office of the National Security Adviser (ONSA).
However, the apex bank halted the move to charge the cyber security levy in a circular titled: Re: Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024-Implementation Guidance on the Collection and Remittance of the National Cyber Security Levy dated May 17, 2024.
The circular, which was made public on May 19, 2024, was signed by Director, Payments System Management, Chibuzo Efobi and Director, Financial Policy and Regulation, Haruna Mustafa.
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“The Central Bank of Nigeria circular dated May 6, 2024 with Ref:PSMD/DIR/PUB/LAB/017/004 on the above subject refers. Further to this, please be advised that the above referenced circular is hereby withdrawn. Please be guided accordingly,” it reads.
The CBN withdrew it after President Bola Ahmed Tinubu suspended the cyber security levy on May 14, 2024 following the President’s directive to the apex bank to suspend and review the modalities for its implementation.
It would be recalled that fierce criticism had trailed the levy, with the Nigeria Labour Congress (NLC) condemning the directive and describing it as “yet another burden on hardworking Nigerians.”
President of NLC, Joe Ajaero, on May 7, 2024 said such deductions directly affect the disposable income of workers and further diminish the purchasing power of the ordinary citizens, adding that local manufacturers and other businesses were already suffering due the stifling socio-economic environment.
