Federal government suspends controversial 0.5% cybersecurity levy

The federal government has suspended the controversial 0.5 percent cybersecurity levy on electronic banking transactions.

Information Minister Mohammed Idris confirmed this to State House correspondents on Tuesday after the two-day meeting of the Federal Executive Council (FEC) chaired by President Bola Tinubu at the Presidential Villa.

According to him, the levy is being reviewed and is on hold for the time being.

He said: “The cybersecurity levy has been suspended. It is under review. It has been put on hold for now.”

As a reminder, the Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions mandating the implementation of a 0.5% cybersecurity levy on all electronic banking transactions.

This new levy, set at 0.5% of the value of each electronic transaction, has been introduced in response to growing concerns about cyber threats and follows the guidelines of the recently enacted Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024.

According to the CBN, this measure was crucial in improving the security framework for financial transactions across the country.

However, the tax has been criticized by businesses and the public, who fear that it could worsen the already dire economic situation of Nigerians.