Nigeria’s President Bola Tinubu has suspended a planned levy on electronic banking transactions following widespread public criticism of the scheme, Information Minister Mohammed Idris said.
According to a BBC report, the Central Bank of Nigeria (CBN) had last week told financial institutions to charge 0.5% of the value of electronic transfers to raise money for enhancing cybersecurity in the country.
The levy was to start in two weeks.
“The cybersecurity tax policy implementation has been directed by the government to be put on hold, so it has been suspended,” Mr Idris told reporters on Tuesday following a cabinet meeting in the capital, Abuja.
President Tinubu directed the Central Bank of Nigeria (CBN) to review the modalities for its implementation, the minister added.
Many Nigerians had condemned the planned levy, with some saying it would push them back to using cash.
But Mr Idris said that the president was not insensitive to the feelings of Nigerians.
Nigeria is experiencing its worst economic crisis in a generation and many people said the levy would cause further hardship as they struggle to afford basic items.
Citizens reject cybersecurity levy
Nigeria is experiencing its worst economic crisis in a generation and many people say the levy will cause further hardship as they struggle to afford basic items.
Dr Abdulrazaq Fagge, who teaches economics at Yusuf Maitama University, tells the BBC this is a wrong move by the government that will have negative effects on Nigeria’s struggling economy.
“It is not only bad timing but a wrong move altogether as no government should put [an] additional burden on its citizens at a time they are struggling to get by,” he says.
The lecturer says the money should be paid by banks as they make huge profits.
Bread seller Abubakar Sheka says he has already made up his mind to avoid electronic banking transactions by the time the levy starts on 20 May.
“There is no way I will agree to be giving 0.5 percent on my transfers when I earn very little, many people don’t buy bread now and business is fragile.
“Why will this government further make us cry with this despite what we are already going through with high cost of food and fuel?”
Also, the Nigeria Labour Congress, which represents the country’s workers, released a statement rejecting the levy, while the Socio-Economic Rights and Accountability Project (Serap) lobby group has threatened to sue the government.
