LAGOS, Nigeria (VOICE OF NAIJA) – The National Assembly, composed of the Senate and House of Representatives, have expressed different opinion on the recent 0.5 per cent cybersecurity levy introduced by the apex bank.
The disagreement came following a strong condemnation of the levy by Northern Elders Forum (NEF) against the CBN to have imposed the charge on bank customers.
The Senate saw nothing wrong with the implementation while the House of Representatives ordered the apex bank to backdown on the process following current economic crisis.
According to the Senate, both arms of the National Assembly unanimously passed it before President Bola Ahmed Tinubu signed it into law.
It also argued that the levy was not punitive, but aimed at protecting national security and the economy.
READ ALSO: Reps Instruct CBN To Halt Cybersecurity Levy Implementation
Senator representing APC Bauchi South, and Chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar, said the levy was provided for in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024.
Senator Buba noted that the 2024 Cybercrime Act amended, provides clear direction for the application of the levy as it was stated in 2015.
He, however, clarified that the average Nigerian particularly the poor were considered before enacting the levy as various exemptions were introduced by the apex bank.
The lawmaker said: “The Cybercrimes Act of 2015 has provisions for imposing a cybersecurity levy since its enactment, but the vagueness of Section 44 led to different interpretations until the 2024 amendments.
“The levy is 0.5%, equivalent to half a per cent of the value of all electronic transactions by businesses specified in the Second Schedule to the Act.
“The amendments addressed crucial gaps in the Act and empowered the nation to implement the National Cybersecurity Programme effectively. They also seek to realign and empower the country to combat the inadequate funding and disruptive effects of cyber threats on national security and critical economic infrastructures.”
Senator Buba, who underscored the critical nature of the cybersecurity levy’s implementation, said its prudent utilisation would bolster the nation’s capacity to evaluate, execute, upgrade, and fortify the security of national critical economic infrastructure, thereby safeguarding the nation’s cyberspace.
READ ALSO: CBN’s 0.5% Cybersecurity Levy Unreasonable – LCCI
He commended the office of the National Security Adviser and the Central Bank of Nigeria, CBN, for initiating and operationalising the cybersecurity levy, highlighting that its benefits far outweighed its drawbacks.
Reps order CBN to halt implementation of 0.5% levy on e-transactions
On its part, the House of Representatives directed the CBN to suspend implementation of the proposed cybercrimes levy of 0.5% on electronic transactions.
It also directed the CBN to withdraw the ambiguous circular in existence and issue an unequivocal circular, in line with the letters and spirit of the Cybercrimes (Amendment) Act, 2024.
The Green Chamber also mandated its Committees on Banking Regulations, and Banking and other ancillary institutions to guide the CBN properly.
This followed the adoption of a motion of urgent public importance moved by the House Minority Leader, Kingsley Chinda, PDP Rivers, and 359 others.
Moving the motion, 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 May 6, 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.
READ ALSO: Cybersecurity Levy: FG Trying To Extort ‘Helpless’ Citizens – NLC
He noted that Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) 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 the Act” be paid into the Cybersecurity Fund.
“Further notes that 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.
The lawmaker expressed worry that this act had led to apprehension as civil society organisations, CSOs, and citizens had 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 argued that unless immediate pragmatic steps were taken to halt the proposed action of the CBN, the Cybercrime Act shall be implemented in error at a time Nigerians were experiencing the aftermath of multiple removal of subsidies from petroleum, electricity and so on and the rising inflation.
Vanguard