In the face of public backlash against intimidation by trade unions and pressure groups, the Central Bank of Nigeria (CBN) has withdrawn its controversial plan to impose a 0.5% cybersecurity tax on electronic transactions.
This came after the CBN issued a directive requiring all financial institutions, including deposit banks, mobile money operators and payment service providers, to impose a levy.
The money raised was supposed to go to the National Cybersecurity Fund, which is managed by the Office of the National Security Advisor. This levy is probably related to the Cyber Crime (Prohibition, Prevention etc.) Amendment Act 2024.
Nigeria's banking regulator orders banks to impose 0.5% cybersecurity tax on major transactions
Nigerians will now pay a 0.5% cybersecurity tax on every major transaction within two weeks.
On May 17, the CBN officially reversed course and issued a new circular withdrawing the implementation of the levy. The circular, signed by directors of relevant departments of the CBN, informs financial institutions that the original levy plan is “hereby withdrawn.”
This measure will effectively end the current 0.5% cybersecurity levy, giving Nigerians a reprieve. However, the future of cybersecurity funding in Nigeria remains uncertain.
