Nigeria Pauses its Cybersecurity Tax in Response to Public Outcry

Following strong public criticism of the plan, Nigeria’s President Bola Tinubu has suspended a planned tax on electronic banking transactions, according to Information Minister Mohammed Idris.

The Central Bank of Nigeria (CBN) instructed financial institutions last week to levy 0.5% of the value of electronic transfers to generate funds for improving cybersecurity in the nation. The levy would start in five days.

“The implementation of the cybersecurity tax policy has been suspended due to a directive from the government to halt it,” Mr. Idris informed reporters on Tuesday after a cabinet meeting in Abuja, the nation’s capital.

The minister further stated that President Tinubu gave the Central Bank of Nigeria (CBN) instructions to review the implementation’s procedures.

Many Nigerians have criticized the proposed tax, claiming it would force them to resume using cash.

However, Mr. Idris asserted that the president considered Nigerians’ sentiments.

Many claimed the levy would worsen their already dire situation, as they already find it difficult to pay for necessities. Nigeria is currently going through its worst economic crisis in a generation.