In a recent development, the House of Representatives has called upon the Central Bank of Nigeria (CBN) to retract the circular mandating all banks to impose a 0.5 per cent cybersecurity levy on electronic transactions within the country.
The motion, propelled by Kingsley Chinda, representing the Obio/Akpor Constituency, underscores the urgency to halt and revise the levy implementation.
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CBN’s Circular’s Directive Raises Concerns
The circular, directed to various financial institutions, including commercial and merchant banks, non-interest banks, and payment service providers, stipulated the commencement of the levy from Monday, May 6, 2024. The levy, to be deducted at the point of electronic transfer origination, elicited concerns regarding its implications for bank customers.
China highlighted the ambiguity surrounding the circular’s wording, expressing apprehension over its potential interpretation. He noted discrepancies between the directive and the Cybercrimes Act, particularly concerning the entities liable for the levy. The Act specifies businesses subject to such levies, not including bank customers.
The motion further emphasised the public outcry and apprehension triggered by the circular’s issuance. Civil society organisations and citizens have taken various platforms, urging the government to reconsider the levy imposition. Concerns over its timing, amidst economic challenges such as subsidy removals and inflation, have escalated the urgency for intervention.
China emphasised the imperative of immediate action to prevent the erroneous implementation of the Cybercrimes Act. He urged pragmatic steps to avert the levy’s imposition on Nigerian citizens, particularly amidst prevailing economic strains.
As the House of Representatives advocates for the withdrawal of the circular, stakeholders await the CBN’s response to address the concerns raised. The outcome of this deliberation will significantly impact the regulatory landscape governing electronic transactions and cybersecurity measures within Nigeria.
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CBN’s Backstory
On May 6, 2024, the Central Bank of Nigeria (CBN) issued a directive imposing a 0.5% cybersecurity levy on all electronic transactions. This levy, introduced under the newly enacted 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act aims to fund national cybersecurity efforts managed by the Office of the National Security Adviser. Implementing this levy has sparked discussions due to a discrepancy in the percentage rate between the former and new acts, emphasising the need for more transparent communication and understanding of the legislation. This move signifies the CBN’s commitment to enhancing cybersecurity measures in the country.