The House of Representatives has called for an immediate halt to the implementation of the proposed cybersecurity levy imposed by the Central Bank of Nigeria (CBN), citing concerns over the interpretation and potential impact on citizens.
The resolution followed a motion raised by Hon. Kingsley Chinda on behalf of other members, which highlighted the ambiguity surrounding the CBN’s circular to financial institutions and payment service providers.
In his address, Chinda stated, “The CBN through a circular to all Commercial, Merchant, Non-interest and Payment Service Banks; other Financial Institutions, Mobile Money Operators and Payment Service Providers, dated May 6, 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).”
Chinda explained that Section 44(2)(a) of the Cybercrimes Act 2024 provided, “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.”
He added that the businesses listed in the Second Schedule included GSM Service Providers, telecommunication companies, Internet Service Providers, Banks and Other Financial Institutions, Insurance Companies, and the Nigerian Stock Exchange.
The minority leader expressed concern that the CBN circular mandated banks, other financial institutions, and payment service providers to implement the levy at the point of electronic transfer origination as “Cybersecurity Levy” and remit the funds.
“The wordings of the circular left the CBN directive to multiple interpretations, including that the levy be paid by bank customers against the letters and spirit of Section 44(2)(a) and the Second Schedule to the Cybercrimes Act, which specified the businesses that should be levied accordingly,” Chinda said.
He lamented that the act had led to apprehension, with civil society organizations and citizens voicing concerns and issuing ultimatums for a reversal of the levy imposed on Nigerians.
Chinda warned: “Unless immediate pragmatic steps were taken to halt the proposed action of the CBN, the Cybercrime Act would be implemented in error at a time Nigerians were experiencing the aftermath of multiple removal of subsidies from petroleum, electricity and so on, and rising inflation.”
Consequently, the House resolved to “direct the Central Bank of Nigeria to withdraw the ambiguous circular and issue an unequivocal Circular in line with the letters and spirit of the Law.” The House Committees on Banking Regulations, and Banking and other Ancillary Institutions were also directed to guide the Central Bank of Nigeria properly.”