House of Rep asks CBN to retract Cybersecurity Levy Implementation

Oluwasegun SanusiMay 9, 20241 Mins read920

called upon the Central Bank of Nigeria (CBN) to retract its recent directive mandating banks to impose a 0.5 per cent cybersecurity levy on all electronic transactions within the country.

The House of Representatives has called upon the Central Bank of Nigeria (CBN) to retract its recent directive mandating banks to impose a 0.5 per cent cybersecurity levy on all electronic transactions within the country.

This motion, pushed forward by Kingsley Chinda, the representative for the Obio/Akpor Constituency, asks with urgency the Central Bank to halt and revise the implementation of this levy, as reported by The Nation.

Recall the circular issued by the CBN, addressed to all commercial, merchant, non-interest, and payment service banks, outlined the commencement of the levy on May 6, 2024.

It detailed that the levy would be charged at the point of electronic transfer origination and would be deducted and remitted by financial institutions, with a corresponding narration in customers’ accounts as ‘Cybersecurity Levy.’

However, Chinda highlighted concerns regarding the broad interpretation of the circular’s language, particularly in relation to the Cybercrimes Act. He pointed out that while the Act specifies the entities subject to the levy, such as GSM Service Providers, telecommunication companies, Internet Service Providers, and financial institutions, the CBN’s directive could potentially shift the burden onto bank customers, contrary to the Act’s provisions.

This ambiguity has triggered apprehension among civil society organizations and citizens, who have voiced their objections through both traditional and social media platforms.

The lawmaker stressed that the imposition of this levy on Nigerians amidst economic challenges, including subsidy removals and rising inflation, would only exacerbate the financial burden on the populace.

Chinda emphasized the need for immediate action to prevent the erroneous implementation of the Cybercrimes Act, urging pragmatic steps to rectify the situation.