By Gloria Ikibah
The House of Representatives has directed the Central Bank of Nigeria to withdraw the ambiguous circular on the proposed Cybersecurity levy and issue an unequivocal circular in line with the letters and spirit of the law.
This was sequel to a motion of public importance on the “Urgent Need To Halt The Proposed Implementation of The Cybersecurity Levy By The Central Bank Of Nigeria” moved by the Minority Leader of the House, Rep. Kingsley Chinda and 359 others on Thursday at plenary.
Debating the motion, the Minority Leader 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 per cent levy on electronic transactions in line with Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 (“Cybercrimes Act’).
The motion reads further: “Also notes that 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.
“Further notes that 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.
“Concerned that 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.
“Further concerned that 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”.
The lawmakers expressed worries that this act has led to apprehension as Civil Society Organisations and citizens 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.
According to him, unless immediate pragmatic steps are taken to halt the proposed action of the CBN, the Cybercrime 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 abe the rising inflation.
The House unanimously adopted the motion and mandated the House Committees on Banking Regulation and Banking and Other Ancillary Institutions to guide the Central Bank of Nigeria properly.