The House of Representatives on Thursday demanded that the Federal Government should halt the Cybersecurity Levy immediately.
This was sequel to a motion promoted by the House of Representatives Minority caucus leader, Rep Kingsley Chinda where the ambiguity associated with the Central Bank of Nigeria, CBN circular was adequately addressed.
To this end, the HoR resolved that:
“The Central Bank of Nigeria should withdraw the ambiguous circular and issue an unequivocal Circular in line with the letters and spirit of the Law.
Direct the House Committees on Banking Regulations, and Banking and other Ancillary Institutions to guide the Central Bank of Nigeria properly.
In the motion which was taken under Matter of Urgent Public Importance and tagged:
‘URGENT NEED TO HALT AND MODIFY THE PROPOSED IMPLEMENTATION OF THE CYBERSECURITY LEVY IMPOSED BY THE CENTRAL BANK OF NIGERIA’, it was noted that:
“The Central Bank of Nigeria through a Circular to all Commercial, Merchant, Non-interest and Payment Service Banks; other Financial Institutions, Mobile Money Operators and Payment Service Providers (“CBN Circular”) dated 6th May, 2024 informed Nigerians of a proposed 0.5% levy on electronic transactions in line with Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 (“Cybercrimes Act”).
” Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 provides that “a levy of 0.5% (0.005) equivalent to half percent of all electronic transactions value by business specified in the Second Schedule to this Act” be paid into the Cybersecurity Fund.
“Businesses which the said Section 44(2)(a) refers to are listed in the Second Schedule to the Cybercrimes Act to be: a) GSM Service Providers and all telecommunication companies; b) Internet Service Providers; c) Banks and Other Financial Institutions; d) Insurance Companies and e) Nigerian Stock Exchange.
“The CBN circular mandates all Banks, Other Financial Institutions and Payments Service Providers to implement the Cybercrimes Act by applying the levy at the point of electronic transfer origination as “Cybersecurity Levy” and remitting same.
“The wordings of the CBN Circular leaves the CBN directive to multiple interpretations including that the levy be paid by Bank customers, that is, Nigerians against the letters and spirit of Section 44(2)(a) and the Second Schedule to the Cybercrimes Act, which specifies the businesses that should be levied accordingly.
“This act has led to apprehension as Civil Society Organisations and Netizens have taken to conventional and social media to call out the Federal Government, give ultimatums for a reversal of the “imposed levy on Nigerians” among other things.
“Unless immediate pragmatic steps are taken to halt the proposed action of the CBN, the Cybercrimes Act shall be implemented in error at a time when Nigerians are experiencing the aftermath of multiple removal of subsidies from petroleum, electricity and so on and the rising inflation.