The Central Bank of Nigeria (CBN) has retracted its earlier directive mandating a 0.5% cybersecurity levy on electronic transactions, following widespread public discontent and government intervention.

The initial policy, introduced via a circular on May 6, 2024, instructed all deposit money banks, mobile money operators, and payment service providers to deduct the levy and remit it to the National Cybersecurity Fund (NCF), overseen by the Office of the National Security Adviser (ONSA).

The announcement triggered significant backlash, with labour unions and pressure groups criticizing the levy’s timing amid the country’s escalating cost of living and inflation rates.

In response to the public outcry, Information Minister Mohammed Idris announced the suspension of the levy on May 14, 2024.

In a subsequent circular dated May 17, 2024, the CBN officially withdrew its earlier directive, advising financial institutions to disregard the May 6, 2024 circular.

This latest notice was signed by Chibuzo Efobi, Director of Payments System Management Department, and Haruna Mustafa, Director of Financial Policy and Regulation Department.