Representatives direct CBN to suspend cybersecurity levy

The House of Representatives has directed the Central Bank of Nigeria (CBN) to stop the proposed imposition of the 0.5% cybercrime levy levied on electronic transactions by bank customers.

Consequently, the House of Representatives directed the CBN to withdraw the existing ambiguous circular and issue a clear circular in accordance with the letter and spirit of the Cybercrimes (Amendment) Act, 2024.

The Green Chamber also mandated its Committees on Banking Regulation and Banks and Other Ancillary Institutions to properly manage the CBN.

This followed the adoption of a motion of urgent public importance moved by the House Minority Leader, Hon. Kingsley Chinda (PDP Rivers) and 359 others.

Chinda said CBN advanced the proposal through a circular to all commercial, commercial, non-interest and payment services banks; other financial institutions, mobile money operators and payment service providers (“CBN Circular”) dated May 6, 2024 informed Nigerians of a proposed 0.5% levy on electronic transactions under Section 44(2)(a) of the Cyber ​​Crimes (Amendment). Law, 2024.

He pointed out that Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 provides that “a levy of 0.5% (0.005) which is half a percent of the total electronic transaction value of a company.” The costs specified in the second appendix to the law will be paid into the cybersecurity fund.

“Furthermore states that the entities to which the said Section 44(2)(a) applies are listed in the Second Schedule to the Cybercrimes Act as follows: a) GSM service providers and all telecommunications companies; b) Internet service provider; c) banks and other financial institutions; d) Insurance companies and e) Nigerian Stock Exchange.

“Concerned that the CBN Circular requires all banks, other financial institutions and payment service providers to implement the Cybercrime Act by collecting and remitting the levy at the place of electronic transfer as “Cybersecurity Levy”.

“Further concern is that the wording of the CBN circular leaves the CBN policy open to multiple interpretations, including the fact that the levy on bank customers, d the Cybercrimes Act, which specifies the companies that should be taxed accordingly,” Chinda said.

The lawmaker expressed concern that this law has given rise to apprehension as civil society organizations and citizens have taken to conventional and social media to call out the Federal Government, issuing ultimatums for a repeal of the “levy imposed on Nigerians,” among other things.

He argued that the cybercrime law would be erroneously implemented unless immediate pragmatic steps were taken to stop the CBN’s proposed measures at a time when Nigerians were facing the consequences of the multiple removal of subsidies on petroleum amid the recovery , electricity and others experience inflation.