House Of Reps Directs CBN To Suspend Cybersecurity Levy

The Central Bank of Nigeria (CBN) has been directed by the House of Representatives to withdraw the circular directing all banks to commence charging a 0.5 percent cybersecurity levy on all electronic transactions within the country.

The motion on the urgent need to halt and modify the implementation of the cybersecurity levy was moved by the member representing the Obio/Akpor Constituency, Kingsley Chinda.

The House urged the CBN to withdraw the circular and “issue a more understandable one,” as Chinda had drawn the attention of the House to multiple interpretations of the CBN directive against the specifications in the Cybersecurity Act.

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Honourable Chinda had drawn the attention of the House to multiple interpretations of the CBN directive against the specifications in the Cybersecurity Act.

The House, however, expressed worry, that the Act would be implemented in error if immediate steps were not taken, to address the concerns around the interpretation of the CBN directive and the Cybersecurity Act.

The CBN on the 6th of May, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers, to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”).

According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions, will be collected and remitted to the National Cybersecurity Fund (NCF), overseen by the Office of the National Security Adviser.