The House of Representatives has told the Central Bank of Nigeria to immediately cease the execution of the apex bank’s cybercrime levy, which was imposed in accordance with the terms of the Cybercrime Act.

The House stated on Thursday that the circular sent by the apex bank was likely to be misunderstood by Nigerians.

The House further stated that the directive violates the word and spirit of Section 442(2a) of the Cybercrime Act, which defines who is required to pay the tax.

The decision was made in response to a motion by minority leader Kingsley Chinda (PDP, Rivers) on behalf of members, in which it requested that the central bank withdraw its previous circular on the implementation of the levy and issue a new circular consistent with the act’s provisions.

CBN instructed banks on Monday to implement the cyber security levy deduction process, which the National Security Adviser office will oversee.

Condemning the policy, the Socio-Economic Rights and Accountability Project gave the federal government 48 hours to withdraw the 0.5% cybersecurity levy imposed on Nigerians.

The CBN directed banks to levy a 0.5 per cent cybersecurity charge on electronic transactions effective May 20, 2024. 

The CBN circular indicated that a 0.5 per cent (0.005) levy, equivalent to half the value of all electronic transactions by the business specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser shall administer.

The CBN clarified that the levy would be separately “reflected in the customer’s account” as “Cybersecurity Levy” and “applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.”

According to the apex bank, the directive which is a follow-up on previous circulars issued in June (Ref: BPS/DIR/GEN/CIR/05/008) and October 2018 (Ref:BSD/DIR/GEN/LAB/11/023) —- is to be remitted to the National Cybersecurity Fund (NCF) and administered by the Office of the National Security Adviser (NSA) led by Nuhu Ribadu.