The Nigerian’s House of Representatives has instructed the Central Bank of Nigeria (CBN) to suspend the planned implementation of the proposed 0.5% cybercrimes levy on electronic transactions made by bank customers.
As a result, the House of Representatives has instructed the Central Bank of Nigeria (CBN) to retract the vague circular currently in circulation and issue a clear directive that aligns with the Cybercrimes (Amendment) Act of 2024 in both its wording and intent.
Additionally, the Green Chamber has tasked its Committees on Banking Regulations, and Banking and other Ancillary Institutions with providing proper guidance to the CBN.
These decisions were made following the adoption of a motion of urgent public importance put forward by the House Minority Leader, Honorable Kingsley Chinda (PDP Rivers), supported by 359 other members.
In his lead debate, Chinda introduced a motion citing a Circular from the Central Bank of Nigeria (CBN) dated May 6th, 2024, which announced a proposed 0.5% levy on electronic transactions in accordance with Section 44(2)(a) of the Cybercrimes (Amendment) Act, 2024, affecting various financial institutions and service providers.
According to the him, “The Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024, Section 44(2)(a) mandates a levy of 0.5% (0.005) on the value of all electronic transactions conducted by businesses listed in the Second Schedule of the Act. This levy is designated to be paid into the Cybersecurity Fund.”
Hon Chinda said, “The businesses mentioned in Section 44(2)(a) of the Cybercrimes Act are specifically outlined in the Second Schedule. These include:a) GSM Service Providers and all telecommunication companies b) Internet Service Providers c) Banks and Other Financial Institutions d) Insurance Companies e) Nigerian Stock ExchangeIt’s important to note that these entities fall under the purview of the Cybercrimes Act and are subject to its regulations.”
“The recent Circular issued by the Central Bank of Nigeria (CBN) mandating Banks, Other Financial Institutions, and Payments Service Providers to implement the Cybercrimes Act by applying a levy at the point of electronic transfer origination has raised concerns.”
“The ambiguity in the Circular’s wording allows for various interpretations, including the possibility of the levy being imposed on Bank customers, which contradicts Section 44(2)(a) and the Second Schedule to the Cybercrimes Act. This discrepancy is against the intended scope of businesses specified to be levied according to the Act.”
Hon Chinda voiced concern over the current situation, where civil society organizations and citizens are expressing apprehension via both traditional and social media platforms, urging the Federal Government to reconsider the imposed levy on Nigerians. They are also issuing ultimatums for its reversal, among other grievances.
He emphasized the need for immediate action to prevent the unintended implementation of the Cybercrime Act, especially at a time when Nigerians are already grappling with the repercussions of numerous subsidy removals, such as those on petroleum and electricity, amidst escalating inflation.
•INDEPENDENTNG.