The House of Representatives has called upon the Central Bank of Nigeria (CBN) to withdraw its directive implementing a 0.5 per cent cybersecurity levy on electronic transactions nationwide. The appeal for a suspension and reevaluation of the cybersecurity levy’s rollout was initiated by Kingsley Chinda, the representative for the Obio/Akpor Constituency.
The circular, distributed to various banking institutions, including commercial, merchant, non-interest, and payment service banks, detailed the commencement of the levy’s enforcement beginning two weeks from Monday, May 6, 2024. The directive mandates financial institutions to deduct and remit the levy at the point of electronic transfer origination.
Chinda, in his motion, expressed concerns regarding the broad interpretation of the directive, particularly concerning which entities should bear the cost of the levy. He emphasized that the Cybercrimes Act’s Second Schedule identifies specific businesses subject to such levies, explicitly excluding bank customers. Chinda argued that the circular’s ambiguous language could lead to misinterpretations.
The representative also acknowledged the public’s apprehension and opposition to what they perceive as an additional financial burden imposed on Nigerians. He highlighted the urgency of halting the CBN’s proposed action, especially amidst ongoing economic challenges such as subsidy removals and escalating inflation rates. Chinda cautioned that a failure to intervene promptly could result in the misapplication of the Cybercrime Act.
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