The Central Bank of Nigeria has withdrawn its directive requiring banks and payment service providers to collect and remit the cybersecurity levy as outlined in the Cybercrime Prevention and Prohibition Amendment Act of 2024.
The withdrawal was announced in a revised circular dated May 17, 2024, signed by the Director of Payment Systems Management, Chibuzor Efobi, and the Director of Financial Policy and Regulation Department, Haruna Mustafa.
The circular was addressed to commercial banks, payment service providers non-interest banks, and others.
According to The PUNCH, the circular was titled, “Re: Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy.”
It read, “The Central Bank of Nigeria circular dated May 6, 2024 (Ref: PSMD/DIR/PUB/LAB/017/004) on the above subject refers.
“Further to this, please be advised that the above-referenced circular is hereby withdrawn.”
It would be recalled that the cybersecurity levy was introduced through a circular dated May 6, 2024, which mandated a 0.5% levy on the value of all electronic transactions to be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
The levy was met with nationwide backlash, prompting the Presidency to suspend its implementation.
The Federal Executive Council also suspended the implementation of the provisions of the law, citing the need for further reviews.
