The chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba has said the Cyberscurity Levy proposed by the Central Bank of Nigeria (CBN) is not intended for use by private citizens or regular bank clients.
This was contained in a statement in Abuja. He claims that the levy is specifically intended to strengthen cybersecurity safeguards and national security in the nation by targeting banking institutions and telecom firms, which are the industries most susceptible to financial crimes and cyber theft.
Senator Buba who sponsored the amendment bill stated that the relevant section of the Cybercrime Act is very clear about the businesses that are required to pay the levy, not the citizens.
He said, “The Act is very explicit about who is responsible for the payment, not Nigerian citizens or individuals. The relevant Section of the Cybercrime Act 2015 listed the businesses required to pay the levy: telecommunications companies, Internet Service Providers, Banks, Insurance Companies, the Nigerian Stock Exchange, and other Financial Institutions.
“The organisations in the sectors have been listed in previous circulars by the Central Bank of Nigeria, especially in 2018. The new circular by the CBN further provided many exemptions.”
While reiterating that the passage of the amendment bill was a collaborative effort of various stakeholders, Buba said, “The passage of the amendment bill was a collaborative effort involving the government, industry players, civil society;
“…and academia in the contributions and active participation in the public hearing before and endorsement by the two chambers of the National Assembly. After rigorous processes, President Bola Ahmed Tinubu signed the bill into law in February 2024.”
While acknowledging that Nigerians, civil society organisations, and other stakeholders were concerned about the state of the economy, the senator was reassured that the cybersecurity law’s implementation was not intended to penalise the populace.
He stressed that the levy is a group effort to safeguard the economy and national security, with the listed corporations bearing the majority of the financial burden.
He said, “The Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, which President Tinubu signed into law in February, imposes a 0.5 percent (0.005) levy equivalent to half the value of all electronic transactions by the businesses specified in the Second Schedule of the Act.
“The levy will be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser (ONSA) shall administer.
“The circular announcing the levy also exempted some transactions from the cybercrime levy, including loan disbursements and repayments, salary payments, intra-account transfers, and other financial transactions.”
