Tinubu Bows To Pressure, Orders CBN To Suspend Proposed 0.5% Cybersecurity Levy

President Bola Ahmed Tinubu has yielded to public pressure by directing the Central Bank of Nigeria (CBN) to halt the implementation of the controversial cybersecurity levy policy and initiate a review.

On May 6, 2024, the CBN issued a circular mandating all banks, mobile money operators, and payment service providers to enforce a new cybersecurity levy.

This levy, as per the Act, imposes a fee of 0.5 per cent on the value of all electronic transactions, to be remitted to the National Cybersecurity Fund overseen by the Office of the National Security Adviser.

The levy faced strong opposition from Nigerians, the Nigerian Labour Congress, and the Centre for the Promotion of Private Enterprises.

The NLC criticized the levy, fearing it would exacerbate the economic hardship faced by Nigerians. Similarly, the CPPE, in a statement by its director, Dr Muda Yusuf, called for its suspension, citing insensitivity amidst economic challenges.

Last Thursday, the House of Representatives intervened by urging the CBN to withdraw its circular on the cybersecurity levy. This followed a motion by Kingsley Chinda, stressing the need to halt and modify the levy’s implementation due to discrepancies in interpretation.

Sources familiar with Tinubu’s stance on the matter revealed to Sunday PUNCH that the President, cognizant of Nigerians’ economic strain since his administration’s economic reforms, opted against imposing additional levies.

A senior presidency official emphasized Tinubu’s sensitivity to public concerns, stating, “The President is aware of Nigerians’ sentiments and is unwilling to implement policies that further burden the populace. He has instructed the CBN to suspend the policy and conduct a review.”

Another official highlighted the President’s intention to review the law, which predates the Tinubu administration, emphasizing his desire to avoid appearing indifferent to public welfare.

Meanwhile, Vice President Kashim Shettima clarified that the tax reforms initiated by the Tinubu administration aimed to enhance the country’s investment climate rather than frustrate Nigerians.

Shettima’s spokesperson, Mr Stanley Nkwocha, conveyed the VP’s message during the Presidential Fiscal Policy and Tax Reforms Committee’s close-out retreat at the Transcorp Hilton, Abuja.

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