The Central Bank of Nigeria (CBN) Monetary Policy Committee has raised interest rates by 150 basis points, increasing them from 24.75 percent in March to 26.25 percent. CBN Governor Olayemi Cardoso announced this decision on Tuesday, highlighting it as a measure to address the country’s escalating inflation.
During the 295th MPC press briefing in Abuja, Cardoso stated that the primary goal of this interest rate hike is to curb the rising headline inflation, which reached 33.69 percent in April. The apex bank has consistently used monetary measures to combat inflation, with this being the third MPC meeting since Cardoso took office in September last year. As of May 2023, Nigeria’s interest rate was 18.75 percent.
**CBN Withdraws Directive on Cybersecurity Levy Collection**
Meanwhile, the CBN has officially rescinded its directive requiring banks and payment service providers to collect and remit fees under the Cybercrime Prevention and Prohibition Amendment Act of 2024. This policy reversal, announced in a revised circular dated May 17, 2024, marks a significant shift.
The original mandate, detailed in a May 6 circular, aimed to enhance national cybersecurity measures by enforcing a national cybersecurity levy on financial institutions. However, the revised circular, signed by the Director of Payment Systems Management, Chibuzor Efobi, and the Director of Financial Policy and Regulation, Haruna Mustafa, nullifies the previous directive.
The circular, titled “Re: Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act 2024 – Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy,” withdraws the earlier directive and pauses the levy collection enforcement. This retraction followed widespread backlash from various stakeholders, sparking a national debate on the levy’s implications for businesses and the public.
In response, the Federal Executive Council suspended the law’s provisions to allow for additional reviews to address the concerns raised. The circular stated, “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 Further to this, please be advised that the above-referenced circular is hereby withdrawn.”