The Federal Government has quietly withdrawn the controversial 0.5% cybersecurity levy, despite the resentment it generated. Senate Chief Whip Ali Ndume praised President Bola Tinubu for listening to the people, ordering a review of the levy, and suspending its implementation. However, the withdrawal has not appeased all critics.
Socio-Economic Rights and Accountability Project (SERAP), BudgIT, and 136 concerned Nigerians have sued the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos over its failure to withdraw the circular directing banks to deduct the levy from customers’ accounts. Similarly, Senior Advocate of Nigeria Olisa Agbakoba said he would challenge the implementation of the levy in court.
Last week, the CBN relied on the Cybercrime Act 2015 (as amended) to direct banks to implement the 0.5% levy on all electronic transactions and remit it to the national cybersecurity fund, effective May 20, 2024. In the suit, the plaintiffs are asking the court to determine whether the CBN’s circular is unconstitutional and unlawful.
See Also: Cybersecurity Levy not Target at Individuals – Senate Buba
The withdrawal of the levy comes amid warnings from an ICT expert, Jide Awe, that the timing of the levy is concerning as Nigerians are already grappling with economic hardship and excessive banking charges. Awe called on the government to focus on strengthening cybersecurity rather than imposing levies that further burden individuals and organizations.
Despite the backlash, the Senate has backed the implementation of the cybersecurity levy, with the Chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, stating that the levy is provided for in the amended Cybercrimes Act and has numerous exemptions to protect ordinary citizens. However, the Labour Party candidate for the 2023 general election, Peter Obi, criticized the levy, saying it will impoverish Nigerians further.
Source: The Guardian