The House of Representatives has demanded an immediate halt to the proposed implementation of the cybersecurity levy imposed by the CBN.
The resolution of the House was a follow-up to the adoption of a motion by Hon. Kingsley Chinda on behalf of others.
He said 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 spelled out that Section 44(2)(a) of the Cybercrimes Act 2024 provided, “A levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule to this Act be paid into the Cybersecurity Fund.”
He added that businesses, which the said Section 44(2)(a) referred to, were listed in the Second Schedule to the Cybercrimes Act to be: GSM Service Providers and all telecommunication companies; Internet Service Providers; Banks and Other Financial Institutions; Insurance Companies and Nigerian Stock Exchange.
The minority leader was concerned that the CBN circular mandated all banks, other financial institutions, and payment service providers to implement the Cybercrimes Act by applying the levy at the point of electronic transfer origination as a “Cybersecurity Levy” and remitting the same.
Chinda lamented that the act had led to apprehension, as civil society organizations and citizens had taken to conventional means and social media to call out the federal government and give ultimatums for reversing the imposed levy on Nigerians, among other things.
He worried that 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 removals of subsidies from petroleum, electricity, and so on, and rising inflation.
The House, therefore, resolved, “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
“Direct the House Committees on Banking Regulations, and Banking and other Ancillary Institutions to guide the Central Bank of Nigeria properly.”
