The Central Bank of Nigeria on 17 May 2024 issued a circular withdrawing its earlier circular dated 6 May 2024 which mandated all banks, mobile money operators, and payment service providers to implement a cybersecurity levy in accordance with the relevant provisions of the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024.
According to the earlier Circular, with some exceptions, the levy was to be a 0.5% deduction from the value of all electronic transactions, which would be remitted to the National Cybersecurity Fund. (Read our alert on the earlier Circular here).
Following the issuance of the earlier Circular of 6 May 2024, there was a widespread public outcry over the levy and its potential adverse effect on the cost of doing business in Nigeria. As a result of this, the Federal Executive Council (FEC) took a decision to suspend the implementation of the Levy.
Implication
With the withdrawal of the Circular of 6 May 2024, banks, mobile money operators and payment service providers would no longer be required to comply with the directives on the deduction and remittance of the 0.5% Cybersecurity levy for the time being. Some argue that this decision might be temporary and the levy can be re-introduced at anytime except the statutory provision is amended/repealed.
Hence, it is important that business owners who rely heavily on digital transactions for making and receiving payments should stay informed about any updates regarding the levy and be prepared to adapt swiftly to any regulatory changes.
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Read the original publication at Andersen