CYBERSECURITY LEVY: NATIONAL ASSEMBLY STOPS IMPLEMENTATION (IT’S FOR COMPANIES NOT INDIVIDUALS)
The House stated on Thursday that the circular sent by the
apex bank was likely to be misunderstood by Nigerians.
The House further stated that the directive violates the
word and spirit of Section 442(2a) of the Cybercrime Act, which defines who is
required to pay the tax.
The decision was made in response to a motion by minority
leader Kingsley Chinda (PDP, Rivers) on behalf of members, in which it
requested that the central bank withdraw its previous circular on the
implementation of the levy and issue a new circular consistent with the act’s provisions.
CBN instructed banks on Monday to implement the cyber
security levy deduction process, which the National Security Adviser office
will oversee.
The CBN directed banks to levy a 0.5 per cent cybersecurity
charge on electronic transactions effective May 20, 2024.
The CBN circular indicated that a 0.5 per cent (0.005) levy,
equivalent to half the value of all electronic transactions by the business
specified in the Second Schedule of the Act, is to be remitted to the National
Cybersecurity Fund, which the Office of the National Security Adviser shall
administer.
The CBN clarified that the levy would be separately
“reflected in the customer’s account” as “Cybersecurity Levy” and “applied at
the point of electronic transfer origination, then deducted and remitted by the
financial institution.”
According to the apex bank, the directive which is a
follow-up on previous circulars issued in June (Ref: BPS/DIR/GEN/CIR/05/008)
and October 2018 (Ref:BSD/DIR/GEN/LAB/11/023) is to be remitted to the National
Cybersecurity Fund (NCF) and administered by the Office of the National
Security Adviser (NSA) led by Nuhu Ribadu.
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Meanwhile, the Trade Union Congress (TUC) has threatened a
massive protest that will shut down the Nigerian economy should the Federal
Government fail to cancel the controversial cybersecurity levy recently
introduced by the Central Bank of Nigeria.
The TUC in a statement signed by its President, Festus
Osifo, on Wednesday, slammed the directive by the CBN to banks imposing a 0.5
per cent cybersecurity levy on almost all electronic transactions.
With the condemnations that have greeted the introduction of
the levy which the CBN said will take effect in two weeks from May 6, the TUC
said it is illogical that this is coming at a time that Nigerians are grappling
with the high cost of living that is imposed by the devaluation of Naira, hyper
hike in the cost of Petrol, supersonic increment in the cost of electricity
tariff, etc.
The TUC further said that it will be left with no option but
to mobilize all its members, stakeholders and indeed the entire masses “to
embark on the immediate protest that would culminate into the total shutdown of
the Nigerian economy as this is one exploitation too many.
The NLC on Tuesday in a statement signed by its President,
Joe Ajaero, lamented that the levy was another anti-people policy of the
government, imposed amid economic hardship.
“This levy, to be implemented by deduction at the
transaction origination, is yet another burden on the shoulders of hardworking
Nigerians. This move, ostensibly aimed at bolstering cybersecurity measures,
threatens to exacerbate the financial strain already faced by the populace.”
The NLC called on the government to stop implementation of
anti-people policies.
Nigerians wait to see if the Apex bank will obey the
National Assembly or not.
It is also not clear whether the Government will listen to
the voices of people and the organized labour, whether the organized labour
will follow its bark with a bite if and when the government disregards its
opinion.
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