President Bola Tinubu has suspended the implementation of the controversial cybersecurity levy and ordered a review.
The decision was taken on Thursday following the outrage that greeted the decision to implement it.
In the course of this week, banks will be asked to “ignore the implementation directive” an official of the Central Bank of Nigeria (CBN) told The Nation.
A source close to the government disclosed that the president had called the CBN governor on the matter and that the CBN is likely going to issue a statement this week deferring the implementation of the policy.
The CBN official said the apex bank was surprised at the level of anger directed at it when it was only obeying a law passed and assented to by the authorities.
The official noted that the CBN does not have the power to repel any law but will engage the banks not to implement the cybersecurity levy deductions.
The decision to implement a 0.5 percent levy on some electronic transactions sparked outrage across the country. Many Nigerians felt the levy would “raise the cost of living and conducting business” and also hinder the growth of digital transactions.
The House of Representatives joined the chorus of disapproval, calling on the CBN to “withdraw its circular directing all banks to commence charging” the levy. They argued the CBN’s directive was “ambiguous” and needed clarification.
President Tinubu, sensitive to the “economic burden on Nigerians,” asked the CBN to “hold off on that policy and review things again. Sources close to the president emphasized his commitment to avoiding policies that “add to the burden of the people.”
The review will not only examine the CBN’s implementation of the levy but also the underlying Cybersecurity Act itself. The Act, passed in 2015, predates the Tinubu administration. Aides to the president suggest he may seek modifications to the Act to ensure it does not “frustrate Nigerians.”
The suspension of the cybersecurity levy and the upcoming review marks a significant shift. The outcome of the review will determine the future of the levy and potentially lead to changes in the Cybersecurity Act. Nigerians will be watching closely to see if the government prioritizes economic well-being and avoids policies that exacerbate financial strain.