FG Pauses Implementation of 0.5% Cybersecurity Levy

By Adedapo Adesanya 

The Nigerian government has announced the suspension of the proposed cybersecurity levy following widespread public outcry with plans to review its implementation.

The Central Bank of Nigeria (CBN) had earlier this month issued a circular to various financial institutions, including commercial, merchant, non-interest, and payment service banks, announcing the 0.5 per cent cybersecurity levy.

The Minister of Information and National Orientation, Mr Mohammed Idris, while briefing State House Correspondents after the Federal Executive Council (FEC) meeting in Abuja on Tuesday, said the policy had been put on hold and is undergoing review.

“The position of the government is that the policy has been suspended. It has been put on hold. That is the position of the government for now. It is undergoing some form of review,” the Minister said.

The decision to suspend the cybersecurity levy comes in response to concerns raised by various stakeholders regarding its timing and potential impact on Nigerians.

Mr Idris emphasised that the matter was discussed during the FEC meeting and will continue to be reviewed in subsequent sessions.

“So, I can tell you that the cybersecurity levy has been put on hold. It is being reviewed by the government,” he stated.

The announcement brings temporary relief to Nigerian households and businesses who were apprehensive about the implications of the levy.

The Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress had earlier called for the withdrawal of the directive. SERAP over the weekend sued the government for not heeding its call to stop the measures.

The Nigerian Economic Summit Group (NESD), amongst others, also urged the federal government to reconsider the levy due to concerns over multiple taxation and inflationary pressures burdening Nigerians.