House of Rep orders CBN to halt implementation of cybersecurity levy
The Central Bank of Nigeria (CBN) has been instructed by the House of Representatives to stop implementing the 0.5% cybercrime fee that would have been applied to bank customers' electronic transactions.
As a result, the House instructed the CBN to revoke the current, unclear circular and publish a clear one that complies with the text and intent of the Cybercrimes (Amendment) Act, 2024.
In order to appropriately direct the CBN, the Green Chamber also required its Committees on Banking Regulations, Banking, and Other Ancillary Institutions.
This came after a resolution of pressing public concern, sponsored by 359 other members of the House Minority Leader, Hon. Kingsley Chinda (PDP Rivers), was adopted.
Chinda, who moved the motion, stated that on May 6, 2024, CBN sent out a circular to all commercial, merchant, non-interest, and payment service banks as well as other financial institutions, mobile money operators, and payment service providers.
The circular, dubbed the "CBN Circular," informed Nigerians about a proposed 0.5% levy on electronic transactions in accordance with Section 44(2)(a) of the Cybercrimes (Amendment) Act, 2024.
He pointed out that the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 stipulates in Section 44(2)(a) that the Cybersecurity Fund must receive "a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by business specified in the Second Schedule to the Act."
“Further notes that businesses which the said Section 44(2)(a) refers to are listed in the Second Schedule to the Cybercrimes Act to be: a) GSM Service Providers and all telecommunication companies; b) Internet Service Providers; c) Banks and Other Financial Institutions; d) Insurance Companies and e) Nigerian Stock Exchange.
“Concerned that 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.
“Further concerned that the wordings of the CBN Circular leaves the CBN 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,” Chinda said.
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