Concerns are being raised over the autonomy status of the Central Bank of Nigeria (CBN) following withdrawal of circular on cybersecurity.
Some analysts say , the withdrawal, coming days after the federal government had suspended a policy which CBN claimed ownership and spelt out the guidelines and accompanying sanctions leaves much to be desired of a banker to the federal government that is supposed to enjoy some level of autonomy .
CBN had on May 6, 2024, through a circular ordered commercial banks, Payment Service Providers and others to begin collection and remittance of 0.5% of the transaction cost of electronic transactions as cyber security levy in line with the provisions of the amended 2024 cybercrimes prohibition and prevention act.
The apex bank demonstrated its authority in the circular warning that there would be penalties for non-compliance as specified in the amended Cyber Crimes Prohibition and Prevention Act. This penalty includes a fine amounting to no less than 2% of the turnover of the defaulting business, among other sanctions.
However, CBN’s action drew condemnation from most Nigerians and particularly the organized private sector who claimed that the action would further cripple production and worsen cost of doing business.
In response to the criticisms and complaints of Nigerians, the federal government through the Minister of Information announced the suspension of the levy pending some form of review in the future.
Curiously, CBN, over the weekend issued a circular dated May 17, 2024 and signed by its Director of Payment Systems Management, Chibuzor Efobi, and Director of Financial Policy and Regulation Department, Haruna Mustafa, and addressed to commercial banks, PSPs, non-interest banks, and others., intimating then that Its earlier statement on the subject has been withdrawn.
Re: Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy
“The Central Bank of Nigeria circular dated May 6, 2024 (Ref: PSMD/DIR/PUB/LAB/017/004) on the above subject refers.
“Further to this, please be advised that the above-referenced circular is hereby withdrawn.”
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The arguments by most analysts is that, the directive for withdrawal should have come from CBN, the originator of the circular, adding that coming after the FG’s pronouncement and directive suggests that the apex bank’s autonomy may be under threat and may, as well,have been used to test the ground for the policy, which they agree may still be reintroduced.
They claim that their apprehension is as a result of ignoble role played by CBN during the immediate past administration, particularly, with Ways and Means which was abused.
“It’s not that some of us are just criticizing CBN for nothing, but our memories of the immediate past where same bank was used to do many things, both within and outside its mandate. At least CBN is supposed to enjoy, if nothing else, instruments autonomy. It must believe in policy measures coming through it and that is the only way to engender confidence in it,” says an analyst who pleaded for anonymity.
