The Central Bank of Nigeria (CBN) recently unveiled a 0.5% cybercrime levy on all electronic transactions, raising doubts about Nigeria’s advancements in financial inclusion and the CBN’s aim of reaching 95% financial inclusion by 2024.
The announcement sparked public outcry, prompting the House of Representatives to intervene and halt its implementation, with President Tinubu also calling for a suspension of the levy.
The National Publicity Secretary of the Peoples Democratic Party (PDP) has embraced the suspension of the levy, labeling it as an anti-people decision from the outset.
Initially included as a provision in the 2015 Cybercrimes Act, the cybersecurity levy primarily targeted financially robust entities, including banks, telecommunications companies, and major corporations. However, the amendments introduced in 2024 aimed to clarify the ambiguities surrounding the implementation of the 2015 Act, yet have only led to further confusion.
The cybersecurity levy proposed by the CBN would impose a 0.5% fee on every transaction, regardless of size, further squeezing the already narrow profit margins of micro and small businesses. This could force everyday Nigerians to revert to inefficient and insecure cash-based transactions, significantly hindering progress in digital financial inclusion.
By calling for a review of the cybersecurity levy, Tinubu acknowledges the need to balance the imperative of combating cybercrime with the potential adverse effects on businesses and consumers. This move underscores the importance of considering the wider implications of regulatory measures on Nigeria’s economic landscape.
In conclusion, Tinubu’s decision to suspend the enforcement of the cybersecurity levy and call for a review reflects a proactive approach to governance and policy-making. It highlights the importance of striking a balance between security imperatives and the need to foster a conducive environment for economic growth and innovation in Nigeria.
