CBN denies reimposing cyber security levy

The Central Bank of Nigeria (CBN) has denied it will reintroduce a controversial cybersecurity levy that was previously suspended.

The denial was contained in a statement entitled “Clarification Regarding the Guidelines for Monetary Policy, Credit, Foreign Trade, and Foreign Exchange for the 2024-2025 Fiscal Year (Monetary Policy Circular No. 45) released by Bank Indonesia on Friday, September 20, 2024.

On May 6, the central bank directed all commercial banks, merchant banks, non-interest banks and payment service banks, mobile money operators and payment service providers to impose a cybersecurity levy of 0.5 percent on electronic transfers.

The CBN then revoked the directive on May 20, essentially suspending the proposed cybersecurity levy on electronic transfers.

However, some reports claim that the central bank is reimposing the levy, citing the CBN’s “Monetary, Credit, Foreign Trade and Foreign Exchange Policy Guidelines for the Fiscal Year 2024-2025.”

Clarifying the controversy in a statement on Friday, the central bank said the guidelines were issued before Dec. 31, 2023, adding that its stance on the suspension had not been revised.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to several instances of misinterpretation or misrepresentation of its biennial publication on Monetary, Credit, Foreign Trade and Exchange Policy Guidelines issued on 17 September 2024.

“In response, the CBN has temporarily withdrawn the documents to minimise the risk of further misrepresentation.

READ ALSO:CBN appoints Ada Chukwudozie as Keystone Bank chief

“As explicitly stated in the stakeholder guidance document, the CBN reiterates that the publication is a compilation of previously issued policies and guidelines issued by the Bank up to a specific cut-off date, usually December 31 of the year concerned.

“In light of this clarification, we urge stakeholders to note the following: Some recent media publications referring to aspects of the Guidelines refer to the Bank’s policy positions issued prior to 31 December 2023, which have changed in light of the 2024 revisions and updates.

“One example is the Cyber ​​Security Levy, which was suspended in May 2024, replacing the circular reported in the Guidelines.

“Certain technical aspects of the Guidelines have been widely reported and misinterpreted.

“For example, the reports incorrectly attempted to link the removal of fuel subsidies to external reserves. The reports essentially lacked any analytical basis for their initial statements, which were intended to look at potential risks that should be mitigated through policy. More recently, the World Bank’s policy on the Naira exchange rate and the fiscal authorities’ policies have shifted the subject in a positive light.

“In short, these Guidelines should primarily be viewed as a summary of the policies, circulars and directives issued by the Bank until the end of 2023.

“It is not a new directive and should not be reported as a new directive. The Bank will continue to provide clear monetary policy direction and advice for the good of the economy as a whole.

“We urge all stakeholders to seek clarification of information regarding the Bank before issuing it,” the statement read.

By: Babajide Okeowo

CBN denies reintroducing cybersecurity levy first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.