House of Representatives Urges CBN to Reconsider Cybersecurity Levy Implementation

The House of Representatives has called on the Central Bank of Nigeria (CBN) to retract its directive mandating all banks to enforce a 0.5 per cent cybersecurity levy on electronic transactions nationwide.

The urgent motion to halt and revise the implementation of this levy was tabled by Kingsley Chinda, the representative for Obio/Akpor Constituency.

The circular, addressed to various financial institutions including commercial, merchant, non-interest, and payment service banks, stipulated the commencement of the levy’s enforcement two weeks from Monday, May 6, 2024.

It outlined that the levy would be deducted at the point of electronic transfer initiation and reflected in customers’ accounts with the description “Cybersecurity Levy.”

Chinda emphasized concerns regarding the circular’s ambiguity, which could be interpreted to imply that bank customers, rather than specified businesses, would bear the levy’s burden, contradicting Section 44(2)(a) of the Cybercrimes Act.

He warned that the levy’s imposition on Nigerians amid economic challenges could exacerbate public discontent and urged prompt action to prevent erroneous implementation.