The Senate and the House of Representatives yesterday disagreed on the implementation of the Cybersecurity levy announced by the Central Bank of Nigeria (CBN).
While the Senate argued that the levy was not punitive, the House called on the CBN to halt its implementation because of the apprehension created by the announcement. Also, the Nigerian Economic Summit Group(NESG) criticised the levy , saying it should be paid by high net-worth companies and individuals.
The levy, contained in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024, is to take off in 10 days.
On Wednesday, the Presidency explained that it was being proposed to tackle cybercrimes and terrorism. It said that Nigeria lost over N273 billion to cybercrimes alone last year.
The CBN, in a circular on Monday directed commercial, merchant, non-interest, payment service banks and other financial institutions, among others to activate the payment of 0.5 percent on some electronic transactions.
Mobile money operators and payment service providers were also asked to do the same.
According to the apex bank, monthly deductions are to be remitted to the National Cyber-security Fund (NCF) account by the fifth business day of every subsequent month.
In spite of the misgivings trailing the levy, the Senate said its prudent utilisation would safeguard the nation’s cyberspace.
It added that there was no cause for alarm because the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 has numerous exemptions to protect and relieve ordinary citizens.
Chairman of the Senate Committee on National Security and Intelligence, Shehu Buba, gave the assurance via a statement he issued in Abuja.
Buba said the exemptions include salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.
overlay-clevercloseLogo
The statement partly reads: “The Cybercrimes Act has provisions for imposing a cybersecurity levy since its enactment, but the vagueness of Section 44 led to different interpretations until the 2024 amendments.
“The levy is 0.5%, equivalent to half a percent of the value of all electronic transactions by businesses specified in the Second Schedule to the Act.
“The amendments addressed crucial gaps and empowered the nation to implement the National Cybersecurity Programme effectively.
“They also seek to realign and empower the country to combat the inadequate funding and disruptive effects of cyber threats on national security and critical economic infrastructures.
“The exemptions include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank, and Other Financial Institutions (OFIs) instructions to their correspondent banks.
“The exemption also applies to interbank placements, banks’ transfers to CBN and vice versa, inter-branch transfers within a bank, cheque clearing and settlements, and Letters of Credit (LCs).
“Others are banks’ recapitalisation-related funding only bulk funds movement from collection accounts; savings and deposits including transactions involving long-term investments such as treasury bills, bonds; and commercial papers; government social welfare programmes transactions, e.g. pension payments; non-profit and charitable transactions including donations to registered non-profit organisations or charities; educational institutions transactions, including tuition payments and other transaction involving schools, universities, or other academic institutions.”
He assured that the levy would bolster the nation’s capacity to evaluate, execute, upgrade, and fortify the security of national critical economic infrastructure.
But in the House of Representatives, members argued that the CBN circular negates the spirit and letters of Section 44(2a) of the Act which specifies those expected to pay the levy.
They consequently asked the CBN to immediately withdraw the circular and issue another one in line with the provisions of the Act.
The decision followed the adoption of a motion of urgent public importance moved by Minority Leader of the House Kingsley Chinda.
<<The Nation>>
