*Senate Backs FG, Says It’s NASS Creation To Safeguard Economy, Country From Insecurity
THE House of Representatives has asked the Central Bank of Nigeria (CBN) to withdraw the circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions within the country.
This was sequel to a motion on the urgent need to halt and modify implementation of the levy moved by the member representing the Obio/Akpor Constituency, Kingsley Chinda.
Recall that the apex bank had in the circular to all commercial, merchant, non-interest and payment service banks, among others to commence implementation of the levy from Monday, May 6, adding: “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.”
But Chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, while supporting the Federal Government on the issue, allayed fears being entertained by Nigerians, saying it is provided for in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024.
He stressed that the levy is not punitive, as it has numerous exemptions to protect and bring relief to ordinary citizens, particularly the poor, such as salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.
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.”
This, he said “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 stated that unless immediate steps were taken to stop the proposed levy from taking effect, “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.”
However, Buba said the amendments to the Cybercrimes Act were collaborative effort of the National Assembly’s ICT and Cybersecurity Committees, which also went through a transparent public hearing process and received contributions from various stakeholders, adding: “Both chambers of the National Assembly unanimously passed it before President Bola Ahmed Tinubu signed it into law.”
He stressed that the provisions for the cybersecurity levy have been in place since 2015, but were delayed due to unclear interpretations and applications, noting: “The Cybercrimes Act of 2015 has provisions for imposing a cybersecurity levy since its enactment, but the vagueness of Section 44 led to different interpretations until the 2024 amendments.
“The levy is 0.5%, equivalent to half a per cent of the value of all electronic transactions by businesses specified in the Second Schedule to the Act.
“The amendments addressed crucial gaps in the Act and empowered the nation to implement the National Cybersecurity Programme effectively, as well as sought to realign and empower the country to combat the inadequate funding and disruptive effects of cyber threats on national security and critical economic infrastructures.”
Buba underscored the importance of implementing the levy, saying its prudent utilisation would bolster the country’s capacity to evaluate, execute, upgrade and fortify the security of its critical economic infrastructure, thereby safeguarding its cyberspace.
He commended the Office of the National Security Adviser and the CBN for initiating the operationalisation of the levy, insisting that its benefits far outweigh its drawbacks.
While maintaining that the mandate of the National Assembly is to make laws that align with the aspirations of Nigerians, he appealed for public support, assuring that the policy would yield maximum benefits for Nigerians in the shortest possible time.
