In a significant policy reversal, the Central Bank of Nigeria (CBN) has withdrawn its directive for banks and payment service providers to collect and remit the cybersecurity levy as stipulated in the Cybercrime Prevention and Prohibition Amendment Act of 2024.
This announcement came through a revised circular issued on May 17, 2024.
The updated circular, signed by Chibuzor Efobi, Director of Payment Systems Management, and Haruna Mustafa, Director of Financial Policy and Regulation Department, was addressed to commercial banks, payment service providers (PSPs), non-interest banks, and other financial institutions. The circular was titled, “Re: Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy.”
The document, which was made available to the public through PUNCH Online on Sunday, stated:
“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 Further to this, please be advised that the above-referenced circular is hereby withdrawn.”
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The initial directive, issued on May 6, 2024, faced widespread backlash from stakeholders across the nation. Concerns were raised about the impact and feasibility of the levy collection, prompting the Presidency to intervene.
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In response to the public outcry, the Federal Executive Council decided to suspend the implementation of the cybersecurity levy provisions. The council emphasized the need for further review and consultation to ensure that the law’s objectives could be met without imposing undue burdens on the financial sector.
The retraction of the directive underscores the CBN’s responsiveness to stakeholder feedback and the government’s willingness to reconsider policy measures that attract significant opposition. This move is likely to be seen as a step towards more inclusive and consultative policy-making in Nigeria’s financial sector.
The suspension of the cybersecurity levy also provides an opportunity for more comprehensive discussions on how best to enhance cybersecurity without adversely affecting the operations of financial institutions. This pause will enable the government and relevant stakeholders to address concerns and refine the approach to funding cybersecurity initiatives.
Platinumpost reports that the Central Bank of Nigeria’s decision to retract the cybersecurity levy directive highlights the dynamic nature of policy implementation and the importance of stakeholder engagement. As the government continues to navigate the complexities of cybersecurity and financial regulation, ongoing dialogue and review will be crucial to developing effective and sustainable solutions.