The Nigerian government has suspended its efforts to finance improvements in national cybersecurity through a 0,5% tax on national electronic transactions, after the current administration came under widespread public criticism for raising taxes during an economic crisis.
Also on May 6, the Central Bank of Nigeria instructed financial institutions to start charging the fee within two weeks. But, following public outcry, President Bola Tinubu committed to blocking the tax over the weekend and, on May 14, a senior administration official officially suspended the measure's application.
“The implementation of the cybersecurity fiscal policy was ordered by the government to be suspended, and therefore it was suspended,” said Information Minister Mohammed Idris.
Nigeria is one of Africa's three largest economies, but the West African nation is currently experiencing its most significant economic crisis in decades, with annual inflation exceeding 30%, falling international investment and rising cost of life. This combination has left average Nigerian citizens struggling to acquire necessities, and it is these citizens who would pay the cybersecurity tax.
The fee rollback comes as Nigeria strives to improve its cybersecurity outlook, with the aim of increasing the number of cybersecurity workers through efforts such as the Virtual Cyber Center and the Cybersafe Foundation. Historically, Nigeria has been a hub for cybercrime, especially social engineering fraud.
According to the Nigeria Cybersecurity Outlook 2024 report, published by the consultancy Deloitte, the bad economic situation could result in an increase in cyber risks for citizens and companies.
In its annual threat landscape assessment, the Cybersecurity Experts Association of Nigeria (CSEAN) recorded an increase in ransomware attacks in 2023, which the group expects to continue into 2024. Additionally, government assets continue to be vulnerable to common farms – a situation that will be more difficult to correct without funding.
