Emi Cardoso, CBN Governor
The Central Bank of Nigeria (CBN) has withdrawn the circular mandating banks and payment service providers to collect and remit cybersecurity tax as proposed in the Cybercrime Prevention and Prohibition Amendment Act, 2024.
This is stated by the apex bank in a revised circular dated May 17, 2024, signed by Mr. Chivzor Efobi, Director of Payment Systems Management and Mr. Haruna Mustafa, Director of Financial Policy and Regulation, and said that commercial banks , PSP, and interest-free banks. Banks, etc.
According to a circular seen by Nairametrics, the bank's previous statement on the matter has been retracted.
It states: other financial institutions, mobile money operators and payment service providers. ”
Re: Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 – Implementation Guidance on Collection and Remittance of National Cybersecurity Tax
“In the above matter, reference is made to the Central Bank of Nigeria Circular dated May 6, 2024 (Reference: PSMD/DIR/PUB/LAB/017/004).”
“Please further note that the above circular is hereby withdrawn.”
The revocation follows the Federal Executive Council's decision to suspend implementation of the provisions of the law due to the need for further review.
back story
On May 6, 2024, the CBN through a circular directed commercial banks, payment service providers and others to begin collecting and remitting 0.5% of transaction costs of electronic transactions as cybersecurity levy in line with the provisions of the 2024 Amendment Act. Remember what I ordered. Cybercrime Prohibition and Prevention Act.
- Further, the apex bank warned that the penalties for violations will be as stipulated in the amended Cybercrime Prohibition Act. The penalties include, among other sanctions, a fine equal to not less than 2% of the turnover of the defaulting company.
- The introduction of the tax angered Nigerians, who said it was ill-timed and would impose additional costs on businesses operating in the country. Public Enterprise Promotion Center, (CPPE) It said the new levy would increase inflationary pressures and curb business growth across the country.
- The Nigerian Association of Chambers of Commerce, Mines and Agriculture (NACCIMA) further called on the Federal Government and the Central Bank of Nigeria (CBN) to set the cap. N500 A new cybersecurity tax was introduced to reduce the financial burden on the private sector.
- In response to the criticism and complaints of Nigerians, The federal government announced the suspension of the levy through the Minister of Information. Pending some form of review in the future. The House of Representatives also called for the tax to be suspended, even though it passed an amended bill introducing the tax.
