House of Representatives directs CBN to suspend cybersecurity levy

The Central Bank of Nigeria (CBN) has been directed by the House of Representatives to withdraw the circular directing all banks to impose a cyber security levy of 0.5 percent on all electronic transactions in the country.

The motion on the urgent need to stop and amend the implementation of the cyber security levy was moved by the Member for Obio/Akpor Constituency, Kingsley Chinda.

The House urged the CBN to withdraw the circular and “issue a more understandable one” as Chinda had brought to the attention of the House several interpretations of the CBN policy contrary to the specifications in the Cybersecurity Act.

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Honorable Chinda had drawn the attention of the House to several interpretations of the CBN policy contrary to the specifications in the Cybersecurity Act.

However, the House expressed concerns that the law would be incorrectly implemented unless immediate action was taken to address concerns over the interpretation of the CBN Policy and the Cybersecurity Act.

The CBN issued a circular on May 6, 2024, requiring all banks, mobile operators and payment service providers to implement a new cybersecurity levy in line with the provisions of the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”) ).

Under the law, a levy of 0.5 percent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund (NCF), which is overseen by the Office of the National Security Adviser.