Reps Says CBN Goofed over 0.5% Cybersecurity Levy
The House of Representatives has directed the Central Bank of Nigeria to halt the implementation of the 0.5 per cent cybercrime levy on transactions.
This resolution was a sequel to a motion of urgent public importance moved by the Minority Leader of the House, Kingsley China who noted that the bank goofed in its circular by misinterpreting the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
The circular stated that the implementation of the levy would begin two weeks from the day of its announcement. The circular was directed to all commercial, merchant, non-interest and payment service banks.
According to the CBN, the directive is in line with the recent amendment to the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
“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’,” CBN’s circular reads in part.
Since the issuance of the circular, the policy has been met with negative reactions. However, the CBN has consistently maintained that they are only implementing a law passed by the National Assembly.
Read Also:
Leading the debate on the motion, Mr Chinda said the Cybercrime Act is implemented wrongly by the CBN.
He said the law did not put the burden of the levy on bank customers.
Citing section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024, Mr Chinda said telecommunication companies, Internet service providers; banks and other financial institutions, insurance companies and the Nigerian Stock Exchange are the companies mandated to pay the cybercrime levy.
Aside from the Interpretation of the Act, Mr Chinda said the CBN’s circular was worded badly.
“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,” Mr Chinda said.
The House directed the CBN to withdraw the ambiguous circular and issue a new one that provides clarity and proper interpretation of the law.
The motion was adopted unanimously without debate.
Speaker Abbas Tajudeen, who presided over the session, directed the House Committees on Banking Regulations, and Banking and other Ancillary Institutions to guide the CBN properly.
By PRNigeria
