By Abbanobi -Eku Onyekachi
The Chairman, Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, has addressed the controversies surrounding the proposed implementation of the Cybersecurity levy by the Central Bank of Nigeria (CBN).
Explaining that the levy is provided for in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024, be however clarifies that the levy is not punitive as it has numerous exemptions to protect and relieve ordinary citizens, particularly the poor. The exemptions, he went on, include salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.
According to him, the amendments to the Cybercrimes Act were a collaborative effort with the National Assembly’s ICT and Cyber Security Committee, adding that the committee also has undergone a transparent public hearing process, receiving contributions from various stakeholders. He said that both Houses of the National Assembly unanimously passed it before President Bola Ahmed Tinubu signed it into law.
Emphasizing that the provisions for the cybersecurity levy had been in place since 2015, but were delayed due to unclear interpretations and applications, he underscored the criticality of the cybersecurity levy’s implementation, stating that its prudent utilisation will bolster the nation’s capacity to evaluate, execute, upgrade, and fortify the security of national critical economic infrastructure, thereby safeguarding the nation’s cyberspace.
The Committee however commended the Office of the National Security Adviser and the Central Bank of Nigeria (CBN) for initiating the operationalizing the cybersecurity levy, highlighting its benefits far outweigh its drawbacks. He expressed appreciation to the leaders and representatives of MDAs at the federal and state levels, as well as to all stakeholders who contributed to this effort’s success.
While maintaining that the Committee’s mandate is to create laws that align with the aspirations of Nigerians, he appealed for public support, assuring that the policy will yield maximum benefits for citizens in the shortest possible time.
Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to 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 the Office of the National Security Adviser shall administer.
Though the announcement created controversy, the circular exempted some transactions from cybercrime levy, the exemptions, he went on included 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 include 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.
Added are government social welfare programmes transactions, like 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.
