The President of Nigeria, Asiwaju Bola Ahmed Tinubu, has instructed the Central Bank of Nigeria (CBN) to halt the implementation of the cybersecurity levy policy.
This directive follows the decision of the House of Representatives, which called on the CBN to retract its circular instructing all banks to levy a 0.5% cybersecurity fee on all electronic transactions within the country.
On May 6, 2024, the CBN issued a circular to all banks, mobile money operators, and payment service providers, mandating the introduction of a new cybersecurity levy by the provisions outlined in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024. The levy was scheduled to take effect on May 20, 2024.
Reports indicate that Tinubu has been cognizant of the financial strain on Nigerians since assuming the presidency and has chosen not to exacerbate the burden with additional levies.
A presidential official who spoke anonymously said, “The President is sensitive to what Nigerians feel. And he will not want to proceed with implementing a policy that adds to the burden of the people.
“So, he has asked the CBN to hold off on that policy and ordered a review. I would have said he ordered the CBN, but that is not appropriate because the CBN is autonomous. But he has asked the CBN to hold off on it and review things again.”
Another official who also spoke anonymously said, “If you look at it, the law predates the Tinubu administration. It was enacted in 2015 and signed by Goodluck Jonathan. It is only being implemented now.
“You know he (Tinubu) was not around when that directive was being circulated. And he does not want to present his government as being insensitive. As it is now, the CBN has held off the instruction to banks to start charging people. So, the President is sensitive. His goal is not to just tax Nigerians like that. That is not his intention. So, he has ordered a review of that law.”
Still on the issue, the Socio-Economic Rights and Accountability Project (SERAP) has threatened to take legal action if the Nigerian Government does not retract the levy within 48 hours.
SERAP asserted that the levy “clearly contravenes the provisions of the Nigerian constitution 1999 (as amended) and the country’s international human rights obligations and commitments”.
Weighing in on the matter, the Nigeria Labour Congress (NLC) remarked that the cybersecurity levy, alongside other levies and taxes imposed on Nigerians, has heightened the financial strains on the Nigerians.
In a statement endorsed by the president of the congress, Joe Ajaero, the NLC demanded a reversal of the levy, emphasising that the federal government should prioritise policies aimed at alleviating the financial burdens on Nigerians.