Reps to CBN: Halt implementation of 0.5% cybersecurity levy

The House of Representatives has directed the Central Bank of Nigeria (CBN) to suspend the implementation of the cybercrime levy.

The apex bank had mandated the banks to begin deduction of 0.5% cybercrime levy on electronic transactions.

But the lawmakers on Thursday, May 9, 2024 halt the implementation of the policy, following the adoption of a motion of urgent public importance moved by the House Minority Leader, Kingsley Chinda (PDP Rivers), and 359 others.

The House also directed the CBN to withdraw its circular on the implementation of the levy and issue a fresh circular in line with the provisions of the Act.

The Green Chamber stated that said the circular by the apex bank was prone to misinterpretation by Nigerians as it negates the spirit and letters of section 44(2a) of the cybercrime Act which specify those who are expected to pay the levy.

Chinda said section 44(2a) of the cybercrime act listed GSM and telecom companies, Internet providers, Banks and other financial institutions, insurance companies and Stocks Exchange as those to pay the stipulated fees.

CBN orders banks to impose 0.5% cybersecurity levy on electronic transfers

In the motion, Rep Chinda said CBN 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% levy on electronic transactions in line with Section 44(2)(a) of the Cybercrimes (Amendment) Act, 2024.

He noted that Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 provides that “a levy of 0.5% equivalent to half per cent of all electronic transactions value by businesses specified in the Second Schedule to the Act be paid into the Cybersecurity Fund.

“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,” Chinda said.

Adopting the motion, the House directed the CBN to withdraw the ambiguous circular and issue an unequivocal circular in line with the letters and spirit of the law.

The House also directed the House Committees on Banking Regulations and other ancillary institutions to guide the CBN properly.

The Star