Following the directive from President Bola Tinubu, the Central Bank of Nigeria (CBN) has withdrawn its earlier circular enforcing the enforcement of the national cybersecurity levy.
The CBN on May 6, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024. 
According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
Financial institutions are required to apply the levy at the point of electronic transfer origination.
The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution. All financial institutions are required to start implementing the levy within two weeks from the issuance of the circular.
By implication, the deduction of the levy by financial institutions should commence on May 20, 2024.
Tinubu ‘s order followed the decision of House of Representatives, which, last Thursday, asked the CBN to withdraw its circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country.
Meanwhile, the CBN has issued another circular to withdraw the May 6, 2024 circular, which enforced the implementation of the Cybersecurity Levy.
The circular dated May 17, 2024 was signed by Chibuzo Efobi, Director, Payments System Management Department and Haruna Mustafa, Director, Financial Policy and Regulation Department.
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