The Central Bank of Nigeria (CBN) has issued a directive to banks and payment service providers as it withdraws the cybersecurity levy, as outlined in the Cybercrime Prevention and Prohibition Amendment Act of 2024.
The announcement of this reversal occurred in a revised circular dated May 17, 2024.
The circular, signed by Chibuzor Efobi, Director of Payment Systems Management, and Haruna Mustafa, Director of Financial Policy and Regulation, was specifically directed towards commercial banks, payment service providers (PSPs), non-interest banks, and other financial institutions. Their signatures underscored the importance and authority of the directive within the financial sector.
The circular, signed by Chibuzor Efobi and Haruna Mustafa, targeted financial institutions to ensure cybersecurity levy compliance. Efobi and Mustafa emphasized the significance of adhering to revised guidelines outlined in the circular. Their aim was to convey the gravity of the situation and ensure full compliance within the financial sector.
The circular, titled “Re: Cybercrimes (Prohibition, Prevention, Etc.) Online sources obtained the “Amendment Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy” on Sunday.
It noted, “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“Further to this, we advise that we have withdrawn the above-referenced circular.”
The directive to collect the levy encountered significant backlash across the country, leading the Presidency to halt its implementation.
The Federal Executive Council decided to suspend the enforcement of the law’s provisions, citing the need for further review.
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