NIGERIA has halted a proposed levy on domestic money transfers to fund cybersecurity, announced Information Minister Mohammed Idris on Tuesday. The decision comes amidst widespread public criticism over rising living costs and a depreciating currency.
Last week, the central bank issued a circular directing all banks and mobile money operators to impose a 0.5 percent charge on the value of electronic transfers as a cybersecurity levy, scheduled to commence in two weeks.
‘The cybersecurity tax policy implementation has been directed by the government to be put on hold, so it has been suspended,’ stated Minister Idris during a press briefing following a cabinet meeting in Abuja, although no specific reason was provided for the suspension.
The proposed levy was part of efforts to regulate the cryptocurrency sector, which officials have linked to the depreciation of Nigeria’s currency. The Nigerian naira has plummeted to record lows amid dollar shortages, exacerbated by the surge in cryptocurrency transactions within the country. Within a span of less than two weeks, the naira depreciated by over 15 percent, reaching a low of 1,568 naira per dollar on Tuesday.
This suspension reflects a dynamic landscape where economic and regulatory strategies intersect amidst evolving challenges.
