ENUGU, Nigeria (VOICE OF NAIJA) – The House of Representatives on Thursday directed the Central Bank of Nigeria (CBN) to immediately suspend the enforcement of its cybercrime levy, mandated under the Cybercrime Act, amid concerns that its implementation might be misconstrued by the public.
The House emphasized that the circular issued by the CBN could lead to misunderstandings among Nigerians and stressed that it contradicts the provisions outlined in Section 442(2a) of the Cybercrime Act, which specifies who is required to pay the tax.
This decision came following a motion presented by Minority Leader Kingsley Chinda (PDP, Rivers) on behalf of the House members, urging the CBN to withdraw its previous circular on the levy’s implementation and issue a revised directive in alignment with the act’s stipulations.
The CBN had on Monday, instructed banks to initiate the cybersecurity levy deduction process, with oversight from the National Security Adviser’s office, effective May 20, 2024.
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Criticism of the policy came from various quarters, including the Socio-Economic Rights and Accountability Project, which demanded the Federal Government of Nigeria retract the 0.5 per cent cybersecurity levy imposed on Nigerians within 48 hours.
The CBN’s directive mandated banks to impose a 0.5 per cent cybersecurity charge on electronic transactions, specifying that half the value of all electronic transactions by businesses listed in the Second Schedule of the Act should be remitted to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.
Clarifying the levy’s mechanism, the CBN explained that it would be separately reflected in customers’ accounts as “Cybersecurity Levy” and applied at the point of electronic transfer origination, with deduction and remittance handled by financial institutions.
The apex bank reiterated that the directive, a continuation of previous circulars issued in June 2018 and October 2018, is aimed at contributing to the National Cybersecurity Fund administered by the Office of the National Security Adviser, led by Nuhu Ribadu.