The Federal Government of Nigeria has suspended the controversial cybersecurity levy on electronic banking transactions.

This announcement was made by the Minister of Information and National Orientation, Mohammed Idris, following a Federal Executive Council (FEC) meeting at the State House in Abuja on Tuesday.

He said the policy is undergoing a review.

“The position of the government is that that policy has been suspended. It has been put on hold. That is the position of the government for now. It is undergoing some form of review. It was reiterated in the council (FEC meeting) yesterday. You know that today’s council (meeting) is a continuation of the council meeting of yesterday,” the minister said.

“So, I can tell you that the cybersecurity levy has been put on hold. It is being reviewed by the government.”

The cybersecurity levy, which was mandated by the Central Bank of Nigeria (CBN) on May 6, required banks, mobile money operators, and payment service providers to implement a 0.5% levy on all electronic transactions.

The collected funds were to be remitted to the National Cybersecurity Fund, managed by the Office of the National Security Adviser (NSA).

However, the introduction of this levy sparked widespread backlash, leading to demands for its suspension.

Critics argued that the levy was burdensome and lacked clarity.

Last week, the House of Representatives urged the CBN to withdraw the circular mandating the levy, describing it as “ambiguous” and calling for a clearer directive.

The House of Representatives’ intervention came in response to a motion by Kingsley Chinda, emphasizing the urgent need to halt and modify the implementation of the cybersecurity levy.

The legislative body requested that the CBN issue a more comprehensible circular to ensure transparency and understanding among financial institutions and the public.