Technology Times has learnt that President Bola Tinubu is reconsidering the implementation of the controversial Cybersecurity Levy imposed on electronic transactions in the country after considering what cabinet insiders describe as the “political liability” of the impending payment.
The Central Bank of Nigeria (CBN) had last week announced the planned implementation of the country’s amended cybercrime law that requires financial and allied services providers to charge a 0.05% Cybersecurity Levy on electronic transactions in the country.
Technology Times learnt that the Presidency may consider a return to status quo following the public outcry that have trailed the directive by the CBN outlining plans for financial services institutions to start deducting the Cybersecurity Levy.
Most importantly, the Presidency is considering the Cybersecurity Levy a “very heavy political burden” that the administration would carrying if its goes ahead with the imposition of on electronic payments considering the prevailing economic situation in Nigeria.
Cybersecurity Levy: To be or not?
According to a source conversant with the situation who chose to speak anonymously, the administration has considered several factors including the multiple interpretations that have been given to the amended law following the CBN’s order to its regulated institutions.
Some of the option’s being considered is a return-to-status-quo, which in government circle could range from a suspension, review or outright cancellation of the plan under the Tinubu administration.
Most importantly, the Presidency is considering the Cybersecurity Levy a “very heavy political burden” that the administration would carrying if its goes ahead with the imposition of on electronic payments considering the prevailing economic situation in Nigeria.
Another key factor, the source said, was the claim that a lawmaker who had championed the amendment had allegedly turned round to deny that the current implementation plan was not what was envisaged during the amendment of the nation’s cybercrime law.
The CBN’s directive, which the apex bank tied to a fresh provision inserted into the Nigeria Cybercrime Act 2015 that was amended in February to impose the cybersecurity levy, has mandated all banks, financial institutions, and payment service providers to implement the levy at the inception of electronic transfers.
Following the review of the law, the “Cybercrimes (Prohibition, Prevention etc.) (Amendment) Act, 2024 now stipulates that “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule to this Act.”
The Second Schedule of the Act was to list business covered under the provisions to include:
- * GSM Service providers and all telecommunication companies;
- * Internet Service Providers;
- * Banks and other Financial Institutions;
- * Insurance Companies; and
- * Nigerian Stock Exchange.
The law says that the Cybersecurity Levy will go to the Office of National Security Adviser (NSA), towards activities that will protect Nigeria’s cyberspace.
“The Office of National Security Adviser,” the amended law says, “shall administer, keep proper records of the accounts and shall ensure compliance mechanism.”
Additionally, it states that, “The account of the Fund shall be audited in accordance with guidelines provided by the Auditor General for the Federation.”
According to the law, “A business specified in the Second Schedule to this Act that fails to remit the levy under section 44 (2)(a) of this Act commits an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business and failure to comply shall lead to closure or withdrawal of the business operational licence.”
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