The House of Representatives has asked the Central Bank of Nigeria (CBN) to withdraw its directive to banks to charge a 0.5% cybersecurity levy on all electronic transactions in the country.
The motion to halt and modify the implementation of the cybersecurity levy was moved by Kingsley Chinda, representing Obio/Akpor Constituency. The CBN’s circular, issued on May 6, 2024, directed banks to deduct the levy from customers’ accounts, effective two weeks from the date of the circular.
Chinda argued that the CBN’s circular misinterprets the Cybercrimes Act, which specifies that the levy should be applied to businesses such as GSM service providers, internet service providers, banks, and insurance companies, not individual customers.
The lawmaker noted that the CBN’s directive has caused widespread concern among citizens and civil society organizations, who are calling for the reversal of the “imposed levy on Nigerians.” He warned that unless the CBN takes immediate action to stop the proposed levy, it will be implemented in error, exacerbating the already difficult economic situation faced by Nigerians.
Here is a paraphrased version of the text, condensed into a single paragraph:
The House of Representatives has asked the Central Bank of Nigeria to withdraw its directive to banks to charge a 0.5% cybersecurity levy on all electronic transactions, citing misinterpretation of the Cybercrimes Act. The levy, which was set to be deducted from customers’ accounts, has caused widespread concern among citizens and civil society organizations, who are calling for its reversal.
The lawmaker who moved the motion, Kingsley Chinda, argued that the levy should be applied to businesses specified in the Cybercrimes Act, not individual customers, and warned that its implementation would exacerbate the already difficult economic situation faced by Nigerians.
