Reps suspend implementation of cybercrime levy by CBN

The House of Representatives has instructed the Central Bank of Nigeria to suspend the implementation of the cybercrime levy it recently introduced.

The House expressed concerns that the bank's directive could be misunderstood by the public and go against the Cybercrime Act.

The House has underscored that the levy introduced by the bank is in direct contradiction to the specific criteria outlined in section 44(2a) of the Act, which clearly defines who should be responsible for paying such a levy.

Following a motion presented by Minority Leader Kingsley Chinda, the House urgently called for the withdrawal of the bank's initial circular on the levy and requested the issuance of a new circular by the Act's provisions.

Chinda stated that according to section 44(2a) of the Cybercrime Act, entities such as GSM and telecom companies, internet providers, banks, financial institutions, insurance companies, and stock exchanges are required to pay specified fees.

According The Nation, he clarified that a circular from the CBN has caused concern nationwide, suggesting that the levy is to be borne by Nigerians at a time when they are already grappling with rising fuel prices and other challenges.

He added that the CBN circular has been subject to various interpretations.

Obi, TUC slams CBN's move to implement cybersecurity levy

Pulse earlier reported that the CBN said the levy deduction would begin within two weeks from the circular date for all financial institutions, adding that the levies would be remitted in bulk monthly to the NCF account domiciled at the CBN.

Labour Party presidential bannerman Peter Obi described the move as insensitively planned, noting that it’s another move to increase Nigerians’ burden.

He said, “It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.”

Meanwhile, the Trade Union Congress (TUC) has threatened to shut down Nigeria’s economy if the Federal Government fails to reverse the cybersecurity levy introduced by the Central Bank of Nigeria.

Reacting to the controversial development, the congress, in a statement signed by its president, Festus Osifo, on Wednesday, May 8, 2024, slammed the CBN for imposing a 0.5% cybersecurity levy “at a time when Nigerians are grappling with the high cost of living.”