SERAP, BudgIT, 136 Nigerians Seek Court Intervention to stop Tinubu govt from imposing cybersecurity levy on Nigerians

Socio-Economic Rights and Accountability Project (SERAP), BudgIT, and 136 concerned Nigerians have jointly filed a lawsuit against the Central Bank of Nigeria (CBN) regarding its recent directive mandating banks and financial institutions to deduct a ‘cybersecurity levy’ from customers’ accounts, labeling it as unlawful.

The directive, issued by the CBN, requires a levy of 0.5% (0.005), equivalent to half a percent of all electronic transactions, to be remitted to the ‘national cybersecurity fund,’ citing the Cybercrime Act 2015 [as amended]. The deadline for implementation is set for Monday, May 20, 2024.

In the suit filed as FHC/L/CS/822/2024 at the Federal High Court in Lagos, the Plaintiffs seek the court’s determination on the legality of the CBN Circular dated May 6, 2024. They question whether it is ultra vires the CBN and if it breaches constitutional provisions, particularly Sections 14(2), 44(1), and 162(1) of the Nigerian Constitution 1999 [as amended].

Furthermore, they argue that the directive and Section 44(2)(a) of the Cybercrimes Act may violate Nigerians’ rights, including their right to property, as enshrined in the constitution and international treaties.

The Plaintiffs request several declarations from the court, including the Circular’s illegality and its inconsistency with constitutional provisions and the Cybercrimes Act. They also seek interim relief to halt the enforcement of the Circular pending the court’s decision.

The suit, represented by lawyer Ebun-Olu Adegboruwa, SAN, asserts that the Circular contradicts the Cybercrimes Act’s provisions and wrongly extends the levy to bank customers, which the Act does not define or designate as financial institutions.

Furthermore, the Plaintiffs argue that the levy’s diversion from the Federation Account to the National Cybersecurity Fund is unconstitutional, as mandated revenues should be paid into the Federation Account, except as otherwise provided.

They highlight the burden placed on bank customers by additional charges, emphasizing the need for judicial intervention to prevent irreparable harm and uphold the rule of law.

The Plaintiffs request the court’s intervention to declare the Circular illegal, null, and void, and to restrain the CBN from enforcing it against banks and their customers. No hearing date has been scheduled yet for the suit.