Nigeria hits pause on cybersecurity levy

TLDR:

• Nigeria suspends proposed cybersecurity levy on domestic money transfers.
• Civil society groups raise concerns about multiple taxation and inflationary pressures.

Nigeria has announced the suspension of the proposed cybersecurity levy on domestic money transfers following backlash from civil society groups. The levy, which was introduced to clamp down on cryptocurrency and strengthen cybersecurity, has been put on hold by the government. The Nigerian Economic Summit Group (NESG) expressed concerns about the timing of the levy, citing worries about multiple taxation and inflationary pressures on Nigerians. The Central Bank of Nigeria issued a circular to financial institutions about the levy, but it has now been suspended due to public outcry.

Full Article:

Nigeria has decided to suspend the proposed cybersecurity levy on domestic money transfers, as announced by Information Minister Mohammed Idris. The levy was planned as part of efforts to crack down on cryptocurrency, which has been blamed for the country’s currency weakness. Civil society groups, including the Nigerian Economic Summit Group (NESG), raised concerns about the introduction of the levy, particularly its timing amid escalating inflation and financial exclusion.

The NESG urged the federal government to reconsider the levy due to worries about multiple taxation and inflationary pressures affecting Nigerians. They highlighted the inappropriateness of the levy given the current cost of living crisis and increased currency circulation. The Central Bank of Nigeria had issued a circular to various financial institutions, including commercial, merchant, non-interest, and payment service banks, about the cybersecurity levy, but it has now been suspended in response to public pressure.

The decision to suspend the levy reflects the government’s responsiveness to public concerns and the need to carefully consider the impact of such policies on the economy. As Nigeria navigates challenges related to cybersecurity and economic stability, finding a balanced approach to addressing these issues becomes crucial for sustainable growth and development.