Reps direct CBN to withdraw circular on cybersecurity levy, says it’s ambiguous

Members of the House of Representatives, on Thursday, directed the Central Bank of Nigeria (CBN) to withdraw the circular directing financial institutions to commence implementation of the 0.5 per cent cybersecurity levy, describing it as “ambiguous”.

The directive came after the consideration of a motion on the urgent need to halt and modify the implementation of the cybersecurity levy, moved by honourable Kingsley Chinda.

According to the lower house of the National Assembly, the CBN is to withdraw the initial circular, and “issue a more understandable one”.

Honourable Chinda had drawn the attention of the House to multiple interpretations of the CBN directive against the specifications in the Cybersecurity Act.

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The House also expressed worry that the Act would be implemented in error if immediate steps were not taken, to address the concerns around the interpretation of the CBN directive and the Cybersecurity Act.

It will be recalled that the CBN, on the 6th of May, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers, to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”).

According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions, will be collected and remitted to the National Cybersecurity Fund (NCF), overseen by the Office of the National Security Adviser.

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