President Bola Tinubu has ordered a review and requested that the Central Bank of Nigeria (CBN) put the controversial cybersecurity levy policy on hold amid scrutiny and lawsuits from human rights concern groups.
Tinubu’s stance on the cybersecurity levy was revealed by presidential sources cited in a story published on Sunday.
The CBN was sued earlier by the Socio-Economic Rights and Accountability Project (SERAP), BudgIT, and 136 other concerned Nigerians “for its failure to withdraw the patently unlawful ‘Circular’ directing all banks and other financial institutions to deduct from customers’ accounts a ‘cybersecurity levy’.”
The plaintiffs in the Federal High Court, Lagos, filed suit number FHC/L/CS/822/2024 last Friday, requesting that the court rule on “whether the CBN Circular dated 6th May 2024, directing financial institutions to deduct from customers’ accounts a cybersecurity levy is unlawful and therefore ultra vires the CBN.”
Recall that on May 6, 2024, the CBN published a circular requiring all payment service providers, banks, and mobile money providers to impose a new cybersecurity fee.
Newsng understands that the sum that has been withheld must be indicated in client accounts with the label “Cybersecurity Levy” and sent by the financial institution.
All financial institutions must implement the fee within two weeks of the circular’s release. It follows that financial institutions should start deducting the fee on May 20, 2024.
The Nigerian Labour Congress, and the Centre for the Promotion of Private Enterprises, however, did not approve of the fee.
NLC opposed the charge, claiming it would make Nigerians’ already dire financial situation worse.
Tinubu’s orders came after the House of Representatives voted last Thursday to request that the CBN rescind the circular ordering all banks to start imposing a 0.5% cybersecurity fee on all electronic transactions made in the nation.