Reps ask CBN to withdraw circular directing on cybersecurity levy

The House of Representatives has issued a stern directive to the Central Bank of Nigeria (CBN) regarding its contentious cybersecurity levy. This comes after widespread public outrage and a wave of dissent from various sectors of society.

The CBN had recently mandated banks to impose a 0.5% levy on all electronic transactions, sparking uproar among citizens, labor unions, and professional bodies alike. However, lawmakers argue that the apex bank misinterpreted the Cybercrimes Act, leading to an unjust burden on Nigerians.

Section 44 of the Cybercrimes Act mandates a levy on specified businesses, not individuals, to fund the National Cybersecurity Fund. Yet, the CBN’s directive appeared to shift the burden onto ordinary citizens, contrary to the law’s intent.

Responding to mounting pressure, the House of Representatives, dubbed “The People’s House,” rallied behind the populace, demanding immediate action. Minority Leader Kingsley Chinda led the charge, emphasizing the timing’s insensitivity amidst ongoing economic challenges.

The House’s resolution calls for the withdrawal of the CBN’s ambiguous circular and a clear alignment with the Cybercrimes Act’s provisions. Additionally, parliamentary committees are tasked with ensuring proper guidance for the CBN.

Supporting the lawmakers’ stance, legal luminary Femi Falana (SAN) underscored the levy’s intended scope, clarifying that it was not meant for individuals. Moreover, concerns over the levy’s constitutionality were raised, adding fuel to the debate.

While the Senate Committee on National Security and Intelligence defended the levy, citing exemptions and collaborative efforts, the Nigerian Economic Summit Group (NESG) cautioned against its potential economic repercussions. NESG highlighted the risk of hindering financial inclusion and exacerbating the burden on citizens.

As the controversy rages on, the nation awaits further developments, hoping for a resolution that balances cybersecurity needs with the welfare of its people.