Nigeria Suspends Cybersecurity Levy: Information Minister Mohammed Idris announced a significant development, stating that Nigeria has decided to halt the planned cybersecurity tax on domestic money transfers. This decision, which has been met with a sigh of relief from the public and financial institutions, was ordered by the administration to be put on hold, as reported by local media sources.
Idris clarified that the authorities in Nigeria have attributed the country’s currency instability to cryptocurrencies. This understanding led to the initial plan of implementing a new tax to regulate the situation.
According to Idris, who reiterated the decision, “The cybersecurity tax policy implementation has been directed by the government to be put on hold, so it has been suspended.”
Civil society organizations had already voiced their opposition to the levy, expressing their concerns before this ruling. The Nigerian Economic Summit Group (NESG) and other financial institutions, including commercial, merchant, non-interest, and payment service banks, have also raised their reservations about the timeliness and potential impact of this proposal, ensuring their voices are being heard.
Financial institutions such as commercial, merchant, non-interest, and payment service banks were allegedly served with a circular by the Central Bank of Nigeria (CBN) concerning the cybersecurity levy in response.
The NESG, in response to the proposed tax, has issued a statement expressing concerns about possible double taxation and the impact on the already burdened citizens. This plea for the federal government to reevaluate the charge is a reflection of the public’s concerns.
The NESG stated that the cybersecurity levy was implemented at the wrong time, given the existing economic issues, especially rising inflation and financial exclusion, as well as the cost of living crises and increased currency circulation.
