Tinubu Orders CBN To Stop Implementation Of Cybersecurity Levy After Backlash
Following the backlash that greeted the introduction of the controversial 0.5 cybersecurity levy, President Bola Tinubu has told the Central Bank of Nigeria to suspend the implementation of the policy and ordered a review.
President Bola Tinubu gave the order following the decision of the House of Representatives, which, last Thursday, asked the CBN to withdraw its circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country.
Osun Defender reports that CBN in a circular issued on May 6, 2024, mandated all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
READ: EDITORIAL: The Cybersecurity Levy Controversy
According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
These may include pension payments, non-profit and charitable transactions including donations to registered non-profit organisations or charities, educational institutions transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions, and transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
According to ThePunch, the president also asked the apex bank to review the policy.
This followed the recent introduction of a 0.5% cybersecurity levy on all electronic transactions by the CBN based on the provisions of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
According to the Act, the charges deducted from all electronic transactions will be remitted to the National Cybersecurity Fund supervised by the Office of the National Security Adviser.
According to The Punch, senior presidency official, said President Tinubu does not want to add to the burden of Nigerians.
The source 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 anonymous source in the presidency said the president ordered the review of the policy because he did not want his administration to be seen as insensitive.
“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,” the source said.
Kazeem Badmus is a graduate of Mass Communication with years of experience. A professional in journalism and media writing, Kazeem prioritses accuracy and factual reportage of issues. He is also a dexterous finder of the truth with conscious delivery of unbiased and development oriented stories.
