Members of the House of Representatives have demanded that the Central Bank of Nigeria (CBN) temporarily withdraw the circular instructing banks to start implementing the 0.5% cybersecurity levy, labeling it as “ambiguous.”
The response came following a motion of urgent importance to stop and revise the implementation of the cybersecurity levy. It was introduced before the House by Kingsley Chinda.
The House stated that the CBN should withdraw the original circular and “issue a more understandable one.”
Honourable Chinda had brought the House’s attention to multiple interpretations of the CBN directive, which contradict the specifications in the Cybersecurity Act.
The House expressed concern that the Act could be wrongly implemented if immediate steps are not taken to address the issues surrounding the interpretation of the CBN directive and the Cybersecurity Act.
Consequently, the House directed the CBN to withdraw the existing ambiguous circular and issue a clear one that aligns with the letter and spirit of the Cybercrimes (Amendment) Act, 2024.
The Green Chamber also mandated its Committee on Banking Regulations as well as Committee on Banking and Other Ancillary Institutions to guide the CBN effectively.
This followed the adoption of a motion of urgent public importance moved by the House Minority Leader, Hon. Kingsley Chinda (PDP Rivers), and 359 others.
In presenting the motion, Chinda noted that the CBN, through a circular addressed 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.
He highlighted that Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024, mandates “a levy of 0.5% (0.005), equivalent to half a percent of all electronic transaction values by businesses specified in the Second Schedule to the Act,” to be paid into the Cybersecurity Fund.
On Monday, May 6, the CBN issued a circular ordering banks to initiate the deduction of a 0.5% cybersecurity levy to be remitted to the account of the Office of the National Security Adviser (ONSA).
