The House of Representatives has asked the Central Bank of Nigeria, CBN, to withdraw its recent circular instructing banks to impose a 0.5 percent cybersecurity levy on all electronic transactions within the country.
The step followed a motion by Honourable Kingsley Chinda, representing Obio/Akpor Constituency, tabled a motion urging the urgent modification of the cybersecurity levy’s implementation.
The circular, directed to various financial institutions, mandated the commencement of the levy within two weeks from May 6, 2024, applied at the point of electronic transfer origination and reflected in customer accounts with the narration ‘Cybersecurity Levy.’
Chinda expressed concerns over the circular’s ambiguity, particularly regarding who bears the levy’s cost, as it potentially contradicts Section 44(2)(a) and the Second Schedule of the Cybercrimes Act. He emphasized that such interpretation could burden Nigerian bank customers, contrary to the Act’s stipulation targeting specific businesses.
The lawmaker highlighted growing apprehension among civil society organizations and citizens, who have voiced opposition through conventional and social media platforms, citing concerns over additional financial burdens amid subsidy removals and rising inflation.
Chinda stressed the need for immediate action to prevent erroneous implementation, underscoring the broader economic context of subsidy removals and inflationary pressures.
The House’s motion signals a pushback against the CBN’s directive, emphasizing the importance of clarity and fairness in cybersecurity levy implementation.