The Central Bank of Nigeria (CBN) has retracted 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.
This decision was communicated in a revised circular dated May 17, 2024, signed by Chibuzor Efobi, Director of Payment Systems Management, and Haruna Mustafa, Director of Financial Policy and Regulation Department. The circular was addressed to commercial banks, payment service providers (PSPs), non-interest banks, and other financial institutions.
According to the circular, the CBN’s previous statement on the matter has been withdrawn. It specified: “Circular to all commercial, merchant, non-interest, and payment service banks; other financial institutions, mobile money operators, and payment service providers.”
Re: Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy
“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“Further to this, please be advised that the above-referenced circular is hereby withdrawn.”CBN Withdraws Cybersecurity Levy Directive
On May 6, 2024, the CBN issued a circular instructing commercial banks, payment service providers, and others to begin collecting and remitting 0.5% of the transaction cost of electronic transactions as a cybersecurity levy, in compliance with the amended 2024 Cybercrimes Prohibition and Prevention Act.
Additionally, the apex bank warned that non-compliance would incur penalties as specified in the amended Act, including a fine of no less than 2% of the turnover of the defaulting business, among other sanctions.
The introduction of the levy sparked public outcry, with many Nigerians arguing that the timing was inappropriate and that it imposed additional costs on businesses. The Centre for the Promotion of Public Enterprise (CPPE) warned that the new levy would exacerbate inflation and hinder business growth across the country.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) urged the Federal Government and the CBN to cap the cybersecurity levy at a maximum of N500 to ease the financial burden on the private sector.
In response to these criticisms, the federal government, through the Minister of Information, announced the suspension of the levy pending a future review. The federal House of Representatives also called for the suspension of the levy, despite having passed the amendment act that introduced it.
