The Central Bank of Nigeria (CBN), has disclosed on Sunday, May 19, 2024, that they have indeed withdrawn the implementation of 0.5 per cent levy on all electronic transactions value as part of measures to tackle the rising threats of cybercrime in the financial system.

The withdrawal was made known in a press statement on May 17, 2024 and addressed to all commercial, merchant, non-interest and payment service banks. It also included other financial institutions like Mobile Money Operators and Payment Service Providers – and signed by CBN Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustafa.

Parts of the statement read: “The Central Bank of Nigeria circular dated May 6, 2024 (Ref: PSMD/DIR/PUB/LAB/017/004) on the above subject refers.

“Further to this, please be advised that the above referenced circular is hereby withdrawn. Please be guided accordingly.”

Recall that on May 6, 2024, CBN ordered the implementation of the levy after the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, which provided for the rate deduction.

But after receiving several public backlash, the presidency ordered the withdrawal of the policy in a statement.

According to the CBN, that the deducted funds are to be sent to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA), a decision that had been contested by stakeholder who queried the legality ONSA receiving unappropriated funds with the approval of the National Assembly.

Accordingly, all banks, Other Financial Institutions and Payments Service Providers are required to implement the new provision of the Act as directed.

The apex bank had noted that the levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.

The deducted amount would have been reflected in the customer’s account with the narration: “Cybersecurity Levy”.

BEB