The Socio-Economic Rights and Accountability Project has given the Federal Government 48 hours to withdraw the 0.5% ‘cybersecurity levy’ imposed on Nigerians.

In a statement on its official X handle on Tuesday, SERAP threatened to drag the Federal Government to court if the “grossly unlawful” directive by the Central Bank of Nigeria is not withdrawn.

SERAP said, “The Tinubu administration must immediately withdraw the grossly unlawful CBN directive to implement section 44 of the Cybercrime Act 2024, which imposes a 0.5% ‘cybersecurity levy’ on Nigerians. We’ll see in court if the directive is not withdrawn within 48 hours.’’

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

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

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.

Exempted from paying the levy are tuition fee transactions at all educational levels including primary, secondary and university; loan disbursements and repayments; salary payments; intra-account transfers within the same bank or between different banks for the same customer; and intra-bank transfers between customers of the same bank.

The exempted category further includes bank transfers to and from CBN, cheque clearing, letters of credit, “savings and deposits including long-term investments” like treasury bills, bonds and commercial papers.

Errant financial institutions who disobey the CBN would forfeit two per cent of their annual turnover to the apex bank.