(UPDATED) Representatives direct CBN to suspend cybersecurity levy

The House of Representatives on Thursday called on the Central Bank of Nigeria to withdraw the circular directing all banks to impose a cybersecurity levy of 0.5 percent on all electronic transactions in the country, The Nation reports.

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 circular, which was addressed to all commercial, commercial, non-interest and payment service banks, among others; noted that implementation of the levy will begin two weeks after Monday, May 6, 2024.

“The levy is collected at the place of electronic transfer, then deducted and paid by the financial institution. The deducted amount will be reflected in the customer’s account with the notation “Cybersecurity Levy,” the circular reads in part.

In the motion, Chinda said: “The House notes that companies covered by the said Section 44(2)(a) are listed in the Second Schedule to the Cybercrimes Act as GSM service providers and all telecommunication companies; Internet provider; banks and other financial institutions; Insurance companies and the Nigerian Stock Exchange.

“The CBN circular requires all banks, other financial institutions and payment service providers to implement the Cybercrimes Act by collecting and remitting the levy at the place of electronic transfer as a “Cybersecurity Levy”.

“The wording of the CBN Circular leaves the directive open to several interpretations, including that the levy must be paid by bank customers, i.e. Nigerians, contrary to the letter and spirit of Section 44(2)(a) and the Second Schedule to Cybercrimes Act.”, which specifies the companies that should be charged accordingly,” the lawmaker noted.

According to the lawmaker, the development “has caused concern as civil society organizations and citizens have taken to conventional and social media to call on the Federal Government to issue ultimatums for a repeal of the ‘imposed levy on Nigerians’, among other things.”

He argued that unless pragmatic steps are taken immediately to stop the CBN’s proposed actions, “the Cybercrime Act will be wrongly implemented at a time when Nigerians are facing the consequences of the multiple removal of subsidies on petroleum, electricity, etc. “experience rising inflation.”