Suspend Implementation of Cybersecurity Levy: Tinubu Directs CBN

President Bola Tinubu has intervened, directing the Central Bank of Nigeria (CBN) to halt the implementation of the contentious cybersecurity levy policy and initiate a review process.

This directive comes in the wake of the House of Representatives’ call last Thursday for the withdrawal of the CBN circular mandating banks to impose a 0.5 per cent cybersecurity levy on all electronic transactions nationwide.

The CBN had issued the circular on May 6, 2024, citing the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 as the legal basis for the levy. The Act stipulates the collection of a 0.5 per cent levy on the value of all electronic transactions to fund the National Cybersecurity Fund overseen by the Office of the National Security Adviser.

Financial institutions were mandated to commence the levy deduction from electronic transactions starting May 20, 2024, with remittances due to the NCF account at the CBN by the fifth business day of each subsequent month.

However, following President Tinubu’s directive, the CBN has suspended the implementation pending a review.

The decision to suspend the levy follows concerns raised by stakeholders regarding the potential economic burden it could impose on Nigerians, particularly amidst ongoing economic reforms.

In response to the suspension, the Vice President, Kashim Shettima, emphasized that the tax reforms are aimed at sustaining investment friendliness rather than frustrating citizens. He reiterated the government’s commitment to creating a tax system beneficial to all citizens.

The suspension of the cybersecurity levy has been welcomed by various quarters, including the opposition Peoples Democratic Party (PDP) and civil society groups. However, Socio-Economic Rights and Accountability Project (SERAP) has threatened legal action if the levy is not withdrawn within 48 hours.

Meanwhile, the Nigeria Labour Congress (NLC) has rejected the levy, citing its exacerbating effect on the financial burden faced by citizens amidst economic challenges.

President Tinubu’s intervention underscores his responsiveness to public concerns and commitment to alleviating economic hardships faced by Nigerians.

The suspension marks a pivotal moment in the ongoing dialogue between the government and stakeholders regarding tax policies and economic reforms in Nigeria.