On Thursday, May 9, 2024, the House of Representatives of the Federal Republic of Nigeria directed the Central Bank of Nigeria to halt and withdraw all circulars ordering commercial institutions to initiate a 0.5 per cent cybersecurity levy charge on all electronic transactions.
According to the circular, all banks should implement the cybersecurity levy in two weeks from Monday, May 6, 2024. The circular stated, “The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy”.
Kingsley Chinda, a member representing the Obio/Akpor Constituency, moved the motion to dismiss and modify the implementation of the cybersecurity levy.
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 payment service providers to implement the Cybercrimes Act by applying the levy at the point of electronic transfer origination as a “Cybersecurity Levy” and remit the same.
This recent update, act, and development of the lawmaker has inspired various civil society organizations and Nigerian citizens to take to their social media platforms and call on the Federal Government to give an ultimatum for a reversal of the imposed levy on Nigerians, among other things.
He further said if adequate actions are not taken to halt the implementation of cybersecurity amidst rising inflation and fuel scarcity, the country might risk experiencing various forms of damage and callouts from every Nigerian.
