The House of Representatives on Thursday directed the Central Bank of Nigeria (CBN) to stop the proposed implementation of the Cybercrimes Levy of 0.5% on electronic transactions of bank customers in the country.
The Green Chamber’s directive to the apex bank followed the adoption of a motion of urgent public importance moved by the House Minority Leader, Hon. Kingsley Chinda and 359 others.
Moving the motion, Chinda recalled that the CBN, through a Circular to all commercial, merchant, non-interest and payment service banks; other financial institutions, mobile money operators and payment service providers (“CBN Circular”) dated 6th May, 2024 informed Nigerians of a proposed 0.5% levy on electronic transactions in line with Section 44(2)(a) of the Cybercrimes (Amendment) Act, 2024.
The lawmaker noted that Section 44(2) (a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024 stated that “a levy of 0.5% (0.005) equivalent to half percent of all electronic transactions value by business specified in the Second Schedule to the Act” be paid into the Cybercrimes (Amendment) Act, 2024.
“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 added.
The lawmaker expressed concern that the apex bank’s directive had led to apprehension in the public as civil society organisations (CSOs) and citizens had taken to conventional and social media to call out the Federal Government, issuing ultimatums for a reversal of the “imposed levy on Nigerians” among other things.
The lawmaker maintained that unless immediate pragmatic steps were taken to halt the proposed action of the CBN, the Cybercrime Act’s implementation shall be fraught with protests, especially when millions of Nigerians were experiencing serious hardships due to the removal of the fuel subsidy and imposition of higher electricity tariff and others amid surging inflation.
Following the adoption of the motion during plenary, the Green Chamber of the National Assembly directed the apex bank to withdraw the circular on the proposed levy in circulation, and issue an unequivocal circular directing the banks not to implement the former directive in line with the letters and spirit of the Cybercrimes (Amendment) Act, 2024.
It also mandated its Committees on Banking Regulations, and Banking and other Ancillary Institutions to guide the CBN properly.
