President Bola Tinubu has officially suspended the controversial 0.5% cybersecurity levy on electronic banking transactions.
Minister of Information and National Orientation Mohammed Idris said President Tinubu ordered the suspension following deliberations by members of the Federal Executive Council (FEC).
Idris disclosed this at the State House in Abuja on Tuesday after the FEC meeting.
He added that the cybersecurity levy was thoroughly discussed at the FEC meeting, and that the president is not insensitive to the feelings of Nigerians.
Recall that in a circular issued on May 6, the Central Bank of Nigeria, CBN, directed 0.5 percent ‘Cybersecurity Levy’ deductions on electronic transfers.
The circular, issued by the Director of Payment Services, Uzoma Efobi, was addressed to all banks and payments services operators in the country.
It noted that the deductions will begin “from the next two week”.
Reactions
The levy sparked reactions from institutions and individuals.
Then on May 9, the House of Representatives asked the CBN to withdraw the directive.
Besides, they contended, it was ambiguous.
They passed the resolution for CBN to withdraw the directive following the adoption of a motion by Kingsley Chinda, and 359 other lawmakers.
“This act has led to apprehension as civil society organisations and citizens have taken to conventional and social media to call out the federal government, give ultimatums for a reversal of the ‘imposed levy on Nigerians’ among other things,” Chinda said.
The levy
The circular was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008), and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
It noted that “Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund which shall be administered by the Office of the National Security Adviser.”
Also, CBN had stressed that “The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”
