Business a.m.
The House of Representatives has issued a directive to the Central Bank of Nigeria (CBN) to suspend its proposed implementation of a 0.5 percent levy on electronic transactions, following public outcry and concerns about potential negative effects on the livelihood of the average Nigerian.
Concerned with the ambiguity of the CBN’s circular on the proposed 0.5 percent cybercrime levy, the House directed the CBN to withdraw the existing circular and issue a new one that aligns with the provisions of the Cybercrimes (Amendment) Act of 2024. The House has also directed its Banking Regulations and Banking and other Ancillary Institutions Committees to guide the CBN in this matter.
In an urgent response to the CBN’s proposed 0.5 percent levy on electronic transactions, as communicated through the CBN Circular dated May 6, 2024, Kingsley Chinda, the house minority leader, and 359 other representatives came together to present a motion of urgent public importance that urged the CBN to reconsider this decision.
Citing Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention, etc.) (Amendment), Chinda contended that according to the Act, only businesses listed in the Second Schedule should be subject to this levy, while ordinary individuals should be exempt.
The lawmaker added, “Further notes that businesses which the said Section 44(2)(a) refers to are listed in the Second Schedule to the Cybercrimes Act to be: a) GSM Service Providers and all telecommunication companies; b) Internet Service Providers; c) Banks and Other Financial Institutions; d) Insurance Companies and e) Nigerian Stock Exchange.
“Concerned that the CBN circular mandates all Banks, Other Financial Institutions and Payments Service Providers to implement the Cybercrimes Act by applying the levy at the point of electronic transfer origination as “Cybersecurity Levy” and remitting same.
“Further concerned that the 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.”
Chinda also highlighted widespread outrage among Nigerian citizens and civil society organizations, calling for the immediate reversal of the levy, and expressed fears that these frustrations could boil over into the form of ultimatums against the government.
Chinda, the implementation of the Cybercrime Act could be detrimental to Nigerians at this time, when the country is already grappling with various economic challenges. He argued that the removal of subsidies on critical goods and services like petroleum and electricity has led to a surge in prices, which has, in turn, exacerbated inflation
