Nigeria’s President, Bola Tinubu, has halted the proposed levy on electronic banking transactions following widespread public outcry, according to Information Minister Mohammed Idris.
The Central Bank of Nigeria (CBN) had announced a directive last week for financial institutions to impose a 0.5% charge on electronic transfers, aimed at bolstering cybersecurity measures in the country. The levy was set to commence in five days.
At a press briefing following a cabinet meeting in Abuja, Mr. Idris informed reporters that the implementation of the cybersecurity tax policy has been suspended as per the government’s directive.
President Tinubu has instructed the CBN to reassess the approach for its implementation, the minister further explained.
The proposed levy faced significant backlash from Nigerians, with concerns raised about its potential to revert people back to using cash transactions.
Mr. Idris emphasized that the president is attuned to the sentiments of Nigerians, indicating a consideration of the economic challenges facing the nation amidst its worst economic crisis in recent times. Many citizens feared the levy would exacerbate financial burdens, making it harder for them to afford essential goods.
