By Ken Afor
The House of Representatives has instructed the Central Bank of Nigeria (CBN) to suspend the implementation of the recently introduced cybercrime levy immediately.
The directive from the House came amidst concerns that the CBN’s circular regarding the levy could be misinterpreted by Nigerian citizens, as it appears to contradict the provisions outlined in Section 44(2a) of the Cybercrime Act.
Section 44(2a) of the Act specifically outlines the entities and individuals who are required to pay the cybercrime levy. However, the House expressed apprehensions that the CBN’s circular failed to align with the spirit and letter of this section, potentially leading to misconceptions and misapplication of the levy.
The directive from the House of Representatives came following a motion of urgent public importance moved by the Minority Leader, Kingsley Chinda, representing Obio/Akpor Federal Constituency of Rivers State, on behalf of all the members.
The motion called on the CBN to immediately retract its earlier circular regarding the implementation of the cybercrime levy and issue a new circular that strictly adheres to the provisions outlined in the Act, as reported by The Nation.
Chinda emphasized that Section 44(2a) of the Cybercrime Act specifically lists the entities and organizations required to pay the stipulated fees.
According to this section, the entities liable to pay the cybercrime levy include GSM and telecommunication companies, internet service providers, banks and other financial institutions, insurance companies, and the stock exchange.
By highlighting the discrepancy between the CBN’s circular and the provisions of the Act, the Rivers State lawmaker underscored the need for the apex bank to rectify the situation and ensure that the implementation of the cybercrime levy aligns with the letter and spirit of the law.
Chinda further elaborated that the CBN’s circular has sparked widespread apprehension and concern among the Nigerian populace. The circular’s language and implications have created the impression that the cybercrime levy is intended to be paid by individual Nigerian citizens. This perception has fueled anxiety, particularly at a time when Nigerians are already grappling with the adverse effects of rising petroleum product prices and other economic challenges.
Moreover, Chinda pointed out that the CBN’s circular has been subject to multiple interpretations, leading to ambiguity and potential misunderstanding regarding the actual entities responsible for paying the cybercrime levy. This lack of clarity has further exacerbated the concerns surrounding the implementation of the levy.
By drawing attention to these issues, Chinda underscored the necessity for the apex bank to address the apprehensions raised by the circular and provide unambiguous guidance that aligns with the provisions of the Cybercrime Act, thereby ensuring transparency and fairness in the implementation process.
It would be recalled that the apex bank in a circular issued on Monday, directed all commercial, merchant, non-interest, and payment service banks, among others, to begin deducting a cybercrime levy of 0.5% (0.005), equivalent to half a percent of all electronic transactions specified by the business.
The circular stated it was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), respectively, on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
It said: “Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.”
