Impacts of Cybersecurity Levy on Nigeria’s Diplomacy and Foreign Relations

Nigeria’s recent decision to implement a 0.5% cybersecurity levy on some electronic transactions is a call for concern and has stirred discussions within the country’s technology circle, more specifically on business relationships. The Apex authority for financial activities in Nigeria, known as the Central Bank of Nigeria published a circular on 6th May 2024 detailing specifics about the cybersecurity levy, such as the percentage to be deducted on all electronic transactions, where it will be remitted, when it becomes effective as well as a list of transactions that are exempted.

This article seeks to critically analyze the potential impacts of this cybersecurity levy on Nigeria’s diplomatic engagements, considering bilateral and multilateral relations, as well as implications for tech innovation and national security. Let’s look at some of the pros and cons as well as possible challenges together.

NB: In the latest development, President Bola Ahmed Tinubu (GCFR) called for the immediate suspension of this levy following a debate by the reps a few days after the announcement.

Cybersecurity and National Security

The intersection of cybersecurity and national security has become increasingly prominent in the digital age…