The House of Representatives Thursday called on the Central Bank of Nigeria (CBN) to retract the circular instructing all banks to initiate a 0.5 per cent cybersecurity levy on electronic transactions nationwide.
Representative Kingsley Chinda of the Obio/Akpor Constituency spearheaded the motion, emphasizing the critical need to halt and amend the implementation of the cybersecurity levy.
The circular, addressed to all commercial, merchant, non-interest, and payment service banks, stipulated that the levy would be enforced starting two weeks from Monday, May 6, 2024.
It outlined that the levy would be imposed at the point of electronic transfer initiation, to be deducted and remitted by the financial institution, with the narration ‘Cybersecurity Levy’ reflected in the customer’s account.
Chinda highlighted concerns over the broad interpretation of the circular, suggesting potential implications for bank customers, contrary to the provisions outlined in Section 44(2)(a) and the Second Schedule to the Cybercrimes Act.
In the motion, Chinda said, “The House notes 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 the Nigerian Stock Exchange.
“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.
“The wordings of the CBN circular leaves the 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,” the lawmaker noted.
The development according to the lawmaker “has led to apprehension as civil society organisations and citizens have taken to conventional and social media to call out the Federal Government to give ultimatums for a reversal of the ‘imposed levy on Nigerians’ among other things.”
He argued that unless immediate pragmatic steps are taken to stop 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.”