The House of Representatives has called for the immediate halt on the proposed implementation of the cybersecurity levy imposed by the Central Bank of Nigeria (CBN).
The decision of the House was sequel to the adoption of a motion moved at the plenary on Thursday by Hon. Kingsely Chinda on behalf of 356 members.
Presenting the motion, Chinda recalled that 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 6th May, 2024 informed Nigerians of a proposed 0.5% levy on electronic transactions in line with Section 44(2)(a) of the Cybercrimes Act, 2024.
Chinda explained that Section 44(2)(a) of the Cybercrimes 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.
He added that businesses which the said Section 44(2)(a) refers to are 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 decried 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.
Chinda lamented that the wordings of the circular leaves 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 specifies the businesses that should be levied accordingly.
He noted 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.
He expressed worry that unless immediate pragmatic steps are taken to halt the proposed action of the CBN, the Cybercrime Act 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 and the rising inflation.
The House, therefore, directed the CBN to withdraw the ambiguous circular and issue an unequivocal Circular in line with the letters and spirit of the Law
It also directed the House Committees on Banking Regulations, and Banking and other Ancillary Institutions to guide the Central Bank of Nigeria properly.