The Central Bank of Nigeria has denied involvement in the processes that led to enacting the Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024 which imposed 0.5 per cent levy on charge on all electronic transactions.
The CBN Governor said that the ‘controversial’ 0.5 per cent charge on all electronic transactions was only being executed by the CBN on behalf of the federal government.
Cardoso said, “For clarity, the cyber security levy originated from the Cyber Crime Act of 2024. That is where it came out from, 2015 and 2024. The Act introduced the levy, which was important to say, given that it is an act, it was considered extensively by both Houses- the Representatives and the Senate.
“And, of course, there was a public hearing as a result. And then after that, there was, of course, the issue of the levy, which was stated clearly at 0.5 per cent and was within the final law.
“Now, as central bank and as bankers to government, we were merely implementing a law that had been enacted. That’s all we were doing. Subsequently, as bankers to the government, as the federal government changed its position, we have withdrawn the circular that was issued to the various banks.”
The reaction came a few days after the bank withdrew its earlier controversial circular directing financial institutions to implement the national cybersecurity levy after the policy.
The apex bank withdrew the circular issued on May 17, 2024 with reference number PSMD/DIR/PUB/LAB/017/005 addressed to commercial banks, mobile money operators, and other financial institutions.
On May 6, 2024 the apex bank issued a circular with reference PSMD/DIR/PUB/LAB/017/004, the bank mandated financial institutions to charge a 0.5 per cent levy on all electronic transactions.
The levy was largely criticized by Nigerians.
Experts had also argued that the levy would disrupt the financial sector, add more burden to Nigerians and impact negatively on the struggling economy.