In response to recent concerns surrounding the Central Bank of Nigeria’s (CBN) announcement of a cybersecurity levy, Senator Shehu Umar Buba, Chairman of the Senate Committee on National Security and Intelligence, representing the APC Bauchi South constituency, clarified that the levy is not targeted at individuals or ordinary bank customers. Rather, it is aimed explicitly at financial institutions and telecom companies, identified as the most vulnerable sectors to financial crimes and cyber fraud, with the goal of enhancing cybersecurity measures and national security in the country.
Speaking from Abuja in a statement released on Sunday, Senator Buba, who sponsored the amendment bill, highlighted the specificity of the Cybercrime Act regarding the entities required to pay the levy, emphasizing that it does not extend to Nigerian citizens or individuals. He pointed out that telecommunications companies, Internet Service Providers, Banks, Insurance Companies, the Nigerian Stock Exchange, and other Financial Institutions are the designated entities liable for the levy, a provision clearly outlined in both the Cybercrime Act of 2015 and subsequent circulars by the CBN, particularly in 2018.
Regarding the amount payable, Senator Buba provided clarity, stating that it is either 0.005 or 0.5% arithmetically, with the fraction 0.005 being converted to a percentage of 0.5% in the amendment. He emphasized that despite the difference in representation, the numerical value remains consistent.
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Senator Buba underscored the collaborative nature of passing the amendment bill, highlighting the involvement of various stakeholders including government bodies, industry players, civil society, and academia. He noted the extensive public hearings and endorsement by both chambers of the National Assembly, culminating in the bill being signed into law by President Bola Ahmed Tinubu in February 2024.
Responding to concerns raised by Nigerians, civil groups, and other stakeholders about the economic impact, Senator Buba reassured that the implementation of the cybersecurity law is not intended to punish citizens. He reiterated that the levy represents a collective effort to safeguard national security and the economy, with the financial burden primarily borne by the specified businesses.
Explaining the mechanics of the levy, Senator Buba outlined that the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 mandates a 0.5 percent (0.005) levy, equivalent to half the value of all electronic transactions by the entities specified in the Second Schedule of the Act. He specified that the levy will be remitted to the National Cybersecurity Fund, administered by the Office of the National Security Adviser (ONSA).
Furthermore, Senator Buba highlighted exemptions outlined in the circular, which include certain transactions such as loan disbursements and repayments, salary payments, intra-account transfers, and other financial transactions, aimed at mitigating the levy’s impact on specific activities within the economy.
The clarification provided by Senator Buba aims to address misconceptions surrounding the CBN’s cybersecurity levy, reaffirming its targeted scope and rationale while assuring the public of measures in place to alleviate potential economic burdens.
Source: VanguardNGR