PRESIDENT Bola Ahmed Tinubu has reportedly directed the Central Bank of Nigeria (CBN) to suspend the implementation of the cybersecurity levy, as provided for in the Cybersecurity Act 2015, which it recently unveiled to avoid overburdening citizens who are already facing dire economic situations.
The directive came at a time the Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, asked the federal government to streamline its taxes and levies, arguing that though higher taxes may not be bad, they should not constitute an undue burden on the people.
Recall that the Socio-Economic Rights and Accountability Project (SERAP), BudgIT and other concerned Nigerians have filed a lawsuit against the CBN “over its failure to withdraw the patently unlawful ‘circular’ directing all banks and other financial institutions to deduct from customers’ accounts a cybersecurity levy.”
The apex bank had last week issued an implementation guideline to all commercial, merchant, non-interest and payment service banks, other financial institutions, mobile money operators and payment service providers on the collection and remittance of the national cybersecurity levy, pursuant to the provisions of Section 44 (2) of the Cybercrime (Prohibition, Prevention, etc.) Act 2015, which it said was in line with recent developments and aimed at bolstering cybersecurity measures in the country.
The proceeds were to be paid into the National Cybersecurity Fund (NCF) under the administration of the Office of the National Security Adviser (ONSA).
But Presidency sources said that contrary to an earlier report, the President did not order the CBN to stop the implementation of the levy, as one who believes in the rule of law and recognising the independence and autonomy of the CBN, only directed the National Security Adviser (NSA) to suspend the implementation.
“The cybersecurity levy is not a CBN action; CBN only issued circular to banks to commence implementation as a regulator. It is an action of the NSA.
“The directive to stop implementation is to ONSA. There will be internal communication between ONSA on how to carry out the presidential directive,” said a source who did not want to be named because he was not authorised to speak, adding that
Tinubu was not insensitive to public opinion, “which informed why he does not want to overburden businesses and citizens with extra levy.”
“Though the intendment of the law is good and what it seeks to achieve with heightened cybersecurity threats, it is important as a country, we have capability to build strong firewalls around the nation’s database and government and corporate organisations’ online infrastructure against hackers.
“The levy is also designed to fund counter-terrorism efforts of the federal government.”
Recall that the House of Representatives, at plenary, last Thursday, asked the CBN to withdraw its May 6, 2024, circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country with effect from May 20, 2024.
The circular listed transactions deemed eligible for exemption to avoid multiple applications of the levy to include loan disbursements and repayments; salary payments; intra-account transfers within the same bank or between different banks for the same customer and intra-bank transfers between customers of the same bank.
Also exempted were other financial institutions’ transfers to their correspondent banks; interbank placements; banks’ transfers to CBN and vice versa; inter-branch transfers within a bank; cheque clearing and settlements; letters of credit and banks’ recapitalisation-related funding.
