It’s been reported that the House of Representatives requested the Central Bank of Nigeria to withdraw the circular that mandated all banks to start imposing a 0.5% cybersecurity tax on all electronic transactions made within the nation on Thursday.
Kingsley Chinda, the member representing the Obio/Akpor Constituency, made the motion on the urgent need to stop and amend the cybersecurity levy’s implementation.
The notice stated that the charge will go into effect two weeks from Monday, May 6, 2024, and was addressed to all commercial, merchant, non-interest, and payment service banks, among other banks.
“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,’” the circular partly read.
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 contended that “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” unless immediate, practical steps are taken to stop the CBN’s proposed action.
