The controversial cybersecurity levy on electronic banking transactions has been suspended by the federal government. Mohammed Idris, Nigeria’s Minister of Information and National Orientation, announced this decision while addressing State House correspondents after the Federal Executive Council (FEC) meeting in Abuja on Tuesday. He stated that the policy is currently under review.

"The government's stance is that the policy has been suspended. It has been placed on hold pending review. This decision was reiterated during yesterday's FEC meeting. Today's meeting is a continuation of yesterday's," the minister explained.

He further elaborated, "So, I can confirm that the cybersecurity levy has been suspended and is currently under review by the government."

The Central Bank of Nigeria (CBN) had earlier mandated banks, mobile money operators, and payment service providers to implement the levy as stipulated in the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024. This directive implied that all electronic transactions would incur a 0.5 percent levy, with the funds directed to the National Cybersecurity Fund overseen by the Office of the National Security Adviser (NSA).

However, the implementation of the levy sparked widespread outrage, prompting calls for its suspension. Last week, the House of Representatives urged the CBN to retract the circular instructing financial institutions to initiate the 0.5 percent cybersecurity levy, citing its ambiguity.

In response to a motion presented by Kingsley Chinda urging the urgent halt and modification of the levy's implementation, the House called for the withdrawal of the initial circular from the CBN and the issuance of a clearer directive.