The Central Bank of Nigeria (CBN) has retracted its earlier directive mandating a 0.5% cybersecurity levy on electronic transactions. The move comes in response to widespread public backlash and a subsequent suspension of the levy by the Federal Government.

The initial directive, issued in a circular on May 6, 2024, instructed deposit money banks, mobile money operators, and payment service providers to deduct the levy and remit it to the National Cybersecurity Fund (NCF). The NCF is managed by the Office of the National Security Adviser (ONSA).

The announcement of this policy quickly led to public outrage, with labor unions threatening actions and various pressure groups criticizing the timing, given the current cost of living crisis and rising inflation.

In light of the controversy, Information Minister Mohammed Idris announced on May 14, 2024, that the Federal Government had decided to suspend the levy.

Following this, the CBN issued a new circular on May 17, 2024, officially withdrawing the previous directive. The latest circular, signed by Chibuzo Efobi, Director of Payments System Management Department, and Haruna Mustafa, Director of Financial Policy and Regulation Department, instructed all financial institutions to disregard the earlier instructions on the cybersecurity levy.

This retraction marks a significant response by the CBN to the concerns raised by the public and stakeholders within the financial sector.

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The Central Bank of Nigeria (CBN) has mandated all banks to initiate a 0.5% cybersecurity levy on electronic transactions within the country.

The directive, disclosed in a circular signed by Chibuzo Efobi and Haruna Mustafa, Directors of Payments System Management and Financial Policy and Regulation Departments respectively, has sparked mixed reactions among netizens.

Many citizens have expressed dismay over what they perceive as an additional financial burden. Social media platforms have been inundated with criticisms, with some labeling the levy as “extortion.”

The implementation of the levy, set to commence two weeks from Monday, May 6, 2024, has raised concerns among consumers already grappling with economic challenges.

However, the circular outlined exemptions from the cybersecurity levy, providing relief for certain transactions.

Notably, loan disbursements, salary payments, and intra-bank transfers are among the 16 exempted transactions.

Transactions involving government social welfare programs, non-profit organizations, educational institutions, and internal bank accounts are also spared from the levy.

Despite the exemptions, the introduction of the levy underscores the CBN’s commitment to enhancing cybersecurity infrastructure in the banking sector.

By imposing the levy at the point of electronic transfer origination, financial institutions are tasked with deducting and remitting the levy accordingly, with the amount reflected in customers’ accounts under the narration “Cybersecurity Levy.”

The measure aims to fortify the financial ecosystem against cyber threats, aligning with global efforts to safeguard digital transactions.

However, its immediate impact on consumers and businesses remains a subject of intense scrutiny as stakeholders assess its implications on the economy and digital finance landscape.

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TECHDIGEST – The Central Bank of Nigeria (CBN) on Monday, October 25, released regulatory guidelines for the seamless operation of the eNaira, a digital currency of the physical Naira.

Chibuzo Efobi, the CBN’s director financial policy and regulation department who made 14-page guidelines available said they had become effective from Monday, October 25.

Here are seven things you should know about eNaira platform

1. The charges for transactions that originate from the eNaira platform shall be free for the first 90 days commencing from October 25, 2021.

2. Electronic Funds Transfer below N5,000 is charged N10; N5,001 – N50,000 is charged N25 and for above N50,000, a N50 charge is associated.

3. Phone numbers without verified National Identification Number (Tier 0) will have a daily transaction limit of N20,000, while the maximum that the account can hold is N120,000.

4. For phone numbers with verified NIN or Tier 1, CBN said they have a daily transaction cap of N50,000 and a maximum balance of N300,000.

5. Tier Two accounts will have access to a daily transaction of N200,000, while N500,000 is the maximum balance that can be held.

6. The Tier 3 account holder can transact a maximum of N1m daily, while the Maximum balance it can hold is N5m.

7. eNaira Merchant speed wallets shall be used solely for receiving and making eNaira payments for goods and services.

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