CBN withdraws circular on cybersecurity levy

CBN withdraws circular on cybersecurity levy

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The Central Bank of Nigeria has withdrawn its circular to its regulated entities to collect and remit the cybersecurity levy.

It disclosed this in a circular with the Ref: PSM/DIR/PUB/LAB/017/005 dated May, 2024, to all commercial, merchant, non-interest and payment service banks; other financial institutions, mobile money operators and payment service providers, which was released on Sunday.

The circular was titled, ‘Cybercrimes (Prohibition, prevention, e.t.c) (Amendment) Act 2024- Implementation guidance on the collection and remittance of the national security levey’, and signed by the Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustapha.

It stated that, “The Central Bank of Nigeria circular dated May 6, 2024 (Ref: PSMD/PUB/LAB/017/004) on the above subject refers.

“Further to this, please be advised that the above referenced circular is hereby withdrawn.”

Recall that in the former circular, the CBN had said, “Following the enactment of the Cybercrimes (Prohibition, prevention, e.t.c) (Amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, “A levy of 0.5 per cent (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the second schedule of the Act,” is to be remitted to the National Cybersecurity Fund, which shall be administered by the Office of the National Security Adviser.

All banks, other financial institutions and payment service providers were required to implement the provisions of the Act.

After concerns generated by this in the country, the Federal Executive Council suspended the Cyber Security Levy, after a FEC meeting.