CBN denies re-introducing cyber security levy

The Central Bank of Nigeria, CBN, has denied the re-introduction of the controversial cyber security levy it abandoned in May after public outcry.

The apex bank clarified this in a circular on Friday.

The Apex Bank said the clarification was necessary due to certain instances of misinterpretation or misrepresentation of its biennial publication on Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines published on September 17, 2024.

On May 6, 2024, the apex bank directed banks and other financial institutions to start deducting a cyber security levy.

The levy was set at 0.5 per cent of all electronic transactions introduced under the newly enacted 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.

In the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, the bank highlighted the levy, which was widely reported.

CBN said, “Some recent media publications referencing aspects of the Guidelines refer to policy positions of the Bank issued prior to 31st December 2023, which have changed in the light of revisions and updates in 2024.

“One example is the Cyber Security Levy, which was suspended in May 2024, superseding the circular reported in the Guidelines.

“Certain technical aspects of the Guidelines have been widely misreported and misrepresented. For example, reports have mistakenly sought to link the fuel subsidy removal to external reserves.”