The Federal Government confirmed on Monday the suspension of the cybersecurity levy initially announced by the Central Bank of Nigeria (CBN). This pause aims to allow a thorough review of the policy.
Minister of Information and National Orientation, Mohammed Idris, communicated this decision to State House correspondents following a two-day Federal Executive Council (FEC) meeting chaired by President Bola Tinubu at the Aso Rock Villa.
“The cybersecurity levy has been suspended. It is undergoing review. It has been put on hold for now,” said Mohammed.
His statement confirmed a Sunday PUNCH report that the President had requested a review of the policy.
The CBN had directed all banks and financial institutions to implement a 0.5% levy on all electronic banking transactions to address increasing cyber threats, as outlined in the recently enacted Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024. This measure aimed to bolster the security framework of financial operations across the country.
However, the levy faced criticism from businesses and the public, who feared it could exacerbate the already challenging economic situation.
Additionally, the Minister of Communication, Innovation, and Digital Economy, Dr. Bosun Tijani, briefed correspondents on two critical projects approved by FEC for the digital economy and technology startup ecosystem.
The first project involves creating a special purpose vehicle through a public-private partnership to deploy 90,000 km of fibre optic cable across Nigeria. This will increase the country’s total fibre optic cable to 125,000 km, making it the third-longest terrestrial fibre optic network in Africa. The initiative aims to address the underutilization of Nigeria’s eight submarine cables, currently at only 10% usage, and is expected to improve internet quality and reduce prices by about 60%. This investment is projected to boost Nigeria’s GDP by 1.5% over the next four years. It will also connect over 200,000 educational institutes, government offices, and critical infrastructures like hospitals currently lacking connectivity.
The second project involves converting a Nigerian property in San Francisco, USA, into a startup hub for Nigerian technology firms. This “Nigerian startup house” will provide a base for Nigerian startups to access funding and investors in the San Francisco Bay Area and Silicon Valley, known globally for their startup ecosystem funding. Last year, investors from this area invested $1.3 billion into Nigerian technology startups. The goal is to increase and enhance foreign direct investment in the technology sector from this region.
