The Central Bank of Nigeria (CBN) has rescinded its directive, issued on May 6, that mandated commercial, merchant, and non-interest financial institutions, as well as Payment Service Banks, mobile money operators, and payment service providers, to begin deducting a 0.5% levy on electronic transactions for the National Cybersecurity Fund starting May 20.
This withdrawal was announced in a circular released on the night of May 19, which was made available to *New Telegraph* in Abuja. The CBN did not provide a specific reason for the retraction, but the move follows widespread criticism of the initial directive.
Last Tuesday, President Bola Tinubu suspended the 0.5% cybersecurity levy after a significant public outcry. Minister of Information and National Orientation, Mohammed Idris, announced the suspension following a Federal Executive Council (FEC) meeting, where it was decided that the CBN should suspend the levy and review its implementation modalities. Idris emphasised that the cybersecurity levy was extensively discussed at the FEC meeting, highlighting President Tinubu’s sensitivity to the concerns of Nigerians.
Earlier, on May 9, the House of Representatives called for the withdrawal of the CBN’s directive, urging financial institutions to halt the levy. This resolution was passed during a plenary session after a motion sponsored by House Minority Leader Kingsley Chinda and 359 other lawmakers. Chinda noted that the levy had sparked significant public apprehension, with civil society organisations and citizens voicing their opposition through various media channels.
The reversal of the CBN’s directive reflects the federal government’s responsiveness to public opinion and legislative intervention regarding the controversial cybersecurity levy.
