The controversial 0.5% cybersecurity levy introduced by the federal government on electronic banking transactions has been suspended temporarily.
After the two-day Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa, Minister of Information Mohammed Idris told State House media on Tuesday.
The tax was being looked at and put on hold for now. “The cybersecurity levy has been suspended,” he said. Reviewing it is going on. The plan had been put on hold for now.
The Central Bank of Nigeria (CBN) directed all banks and financial institutions to implement a 0.5% cybersecurity levy on all bank transactions electronically.
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Why CBN Introduced Cybersecurity Levy
According to new rules passed by the national parliament, the 0.5% cybersecurity level was implemented because of growing worries about online dangers in the country.
The CBN said that the move was necessary to make the country’s financial institutions safer.
However, many Nigerians have criticised the levy, especially from the business community, citing the possibility that the development would worsen the country’s economic challenges.
A leader of the Peoples Democratic Party (PDP), Rilwan Olanrewaju, said President Ola Tinubu’s government was wrong to put the tax in place when Nigerians were already having a hard time.
“Introducing a cybersecurity levy amid this government’s hardship shows how cruel and unpatriotic most influential people are. No excuse exists for making Nigerians’ lives worse, he added.
“The CBN governor is not fit to manage the monetary affairs of this country. The president proved to the world that he does not have what it takes to lead a nation like Nigeria.”
Read also: Lawmakers urge CBN to withdraw Cybersecurity levy
Reps stop CBN’s cybersecurity levy
The House of Representatives told the CBN they couldn’t put the cybersecurity fee into effect.
According to the lawmakers, the Cybersecurity Act specifically mentioned those who should pay the levy, but the CBN circular did not mention them.
According to the representatives, the CBN should take back the memo to banks because it made Nigerians nervous and issued a new one that followed the law.