BusinessNewsNigeriaPoliticsHouse of Reps Hit Pause on CBN’s Cybersecurity Levy

The House of Representatives threw a wrench into the Central Bank of Nigeria’s, CBN, plans this week, directing the bank to suspend the implementation of a proposed 0.5% cybersecurity levy on electronic transactions.

The move came after a motion by Honourable Kingsley Chinda, who raised concerns about the levy’s ambiguity.

According to Chinda, the CBN’s circular outlining the levy was open to misinterpretation. He argued that the wording could lead to the levy being placed on bank customers, contradicting the spirit of the Cybercrimes Act which specifies businesses should shoulder the burden.

The House of Representatives unanimously adopted the motion, calling on the CBN to Immediately suspend the rollout of the cybersecurity levy; withdraw the current, potentially confusing circular; issue a clear and unambiguous circular that aligns with the Cybercrimes Act; and consult with the House Committees on Banking Regulations and Banking and Other Ancillary Institutions to ensure proper implementation.

This decision by the House reflects concerns about the potential impact of the levy on Nigerians, particularly those already grappling with economic challenges.

The House emphasised the need for transparency and adherence to the established legal framework.

The CBN has yet to officially respond to the House directive. It is unclear how the bank will move forward and whether a revised cybersecurity levy will be implemented in the future.