Central Bank of Nigeria Withdraws Cybersecurity Levy Circular

The Central Bank of Nigeria (CBN) has officially withdrawn its circular that mandated commercial banks, mobile money operators, and other financial institutions to implement the National Cybersecurity Levy. This decision, announced on May 20, 2024, comes in response to widespread public concern and a directive from President Bola Ahmed Tinubu.

The now-withdrawn circular, initially issued on May 6, 2024, with reference number PSMD/DIR/PUB/LAB/017/004, required these institutions to collect a 0.5 percent levy on all electronic transactions. Critics argued that this levy would further burden Nigerians already struggling with high inflation and questioned the transparency and clarity of the proposed implementation process.

In a statement released by Chibuzo A. Efobi, Director of the Payments System Management Department, and Haruna B. Mustafa, Director of the Financial Policy and Regulation Department, the CBN confirmed the withdrawal of the circular. The statement, titled “RE: CYBERCRIMES (PROHIBITION, PREVENTION, ETC) (AMENDMENT) ACT 2024-IMPLEMENTATION GUIDANCE ON THE COLLECTION AND REMITTANCE OF THE NATIONAL CYBERSECURITY LEVY,” indicates that the central bank is reconsidering its approach to funding cybersecurity initiatives.

While the withdrawal addresses immediate public concerns, it suggests that the CBN may be exploring alternative methods to enhance cybersecurity without imposing additional financial burdens on citizens.