CBN Denies Reintroduction Of Cyber Security Levy

Following reports that the Central Bank of Nigeria (CBN) has reintroduced the controversial cybersecurity levy, the apex bank has said the levy remains suspended, even as it recalled the biennial publication on Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines published on September 17, 2024.

News reports had quoted the publication which according to the (CBN) is a compendium of its policies issued within a specified period. In a statement, the apex bank clarified that certain technical aspects of the Guidelines have been widely misreported and misrepresented.

It noted that some news reports had referenced some aspects of the Guidelines which refer to policy positions of the Bank issued prior to 31st December 2023, which have changed in the light of revisions and updates in 2024. “One example is the Cyber Security Levy, which was suspended in May 2024, superseding the circular reported in the Guidelines.

“Reports have mistakenly sought to link the fuel subsidy removal to external reserves. Such reports essentially missed the analytical basis for the original statement, which was intended to observe a potential risk that was to be mitigated by policy. More recently, policies of the Bank around the Naira exchange rate and those of the fiscal authorities have positively altered the outlook of the subject in question, it added.

The CBN explained further that as a compendium of previously issued policies and guidelines, the provisions are applicable only to the extent that there have been no updates or revisions to the guidelines and policies contained therein.

“In line with prior editions, the most recent publication (January 2024) contains policies and guidelines issued by the Bank up to 31st December 2023, some of which will remain relevant during the period 2024 – 2025. However, several others may cease to apply owing to revisions or updates that become applicable in the aftermath of its publication.

“This is clearly stated in the document as follows: “The Guidelines may be adjusted by the CBN without prior notice, to address new developments in the domestic and global economies in the period. However, such amendments shall be communicated to the relevant institutions/ stakeholders in supplementary circulars” (Page 8, Paragraph 1).

“The Guidelines must primarily be viewed as a record of policies, circulars and directives issued by the Bank up to the end of 2023. They are not new directives and should not be reported as such. The Bank will continue to provide clear monetary policy direction and advice for the overall good of the Economy. We urge all stakeholders to seek clarification of information about the Bank before publishing,” it pointed out.