President Bola Ahmed Tinubu at the weekend announced the latest cybersecurity levy enshrined in the Cybersecurity Act of 2015 announced by the Central Bank of Nigeria (CBN) to avoid undue burden on the people who are already battling economic hardship. instructed to temporarily suspend the implementation of the fund. .
However, Sen. Shehu Buba, chairman of the Senate National Security and Intelligence Committee, said Sunday that the cybersecurity tax is not targeted at individuals, but at financial institutions, telecommunications companies and others.
The CBN has issued implementation guidelines for the collection and remittance of the national cybersecurity tax to all commercial banks, commercial banks, interest-free payment service banks, other financial institutions, mobile money operators and payment service providers.
The guidance is in accordance with the provisions of section 44(2) of the Cybercrime (Prohibition, Prevention etc.) Act 2015, is in line with recent developments and is aimed at strengthening cybersecurity measures in Nigeria. Ta.
It imposed a levy on electronic transactions and required the proceeds to be paid into the National Cybersecurity Fund (NCF), which is administered by the Office of the National Security Advisor (ONSA).
A presidential official said this Sunday night that contrary to reports earlier in the day, the president did not order the CBN to stop implementing the cybersecurity tax.
Rather, sources claimed that Tinubu, who believed in the rule of law and recognized the independence and autonomy of the CBN, simply instructed the National Security Adviser (NSA) to halt implementation.
According to the source on condition of anonymity, “Cybersecurity levy is not a CBN action. The CBN just issued a circular to banks to start implementing it as a regulator. It is an NSA action.
“The instruction to cease implementation is to ONSA. There will be internal communication between ONSA on how to implement the presidential directive.”
The official said Tinubu was not insensitive to public opinion, “which explains why he does not want to overburden businesses and people with extra taxes.”
“Although the intent of this law is good and seeks to achieve its objectives in the face of growing cybersecurity threats, we as a nation need to protect our nation's databases and the online infrastructure of government and business organizations from hackers. It is important to have the ability to build a strong firewall around the
“This levy is also intended to fund the federal government’s counterterrorism operations.”
Sen. Shehu Buba, chairman of the Senate National Security and Intelligence Committee, said the recently announced cybersecurity tax is not targeted at individuals who operate bank accounts.
Rather, Buba, who is the sponsor of the amended bill, explained in a statement in Abuja that the levy is specifically targeted at financial institutions and telecommunications companies.
He said financial institutions and telecommunications companies are the most vulnerable sectors to financial crime and cyber fraud, and the levy is meant to strengthen domestic cybersecurity measures and national security.
He said: “The relevant provisions of the Cybercrime Act make it very clear that it is companies, not citizens, that have to pay the levy.
“This law is very clear about who is responsible for paying, not Nigerian citizens or individuals.
“The relevant sections of the Cybercrime Act 2015 list businesses that are required to pay the levy, namely telecommunications companies, internet service providers, banks, insurance companies, the Nigerian Stock Exchange and other financial institutions.
“Organizations in these sectors were specifically listed in an earlier circular by the Central Bank of Nigeria in 2018. The new circular by the CBN provides for more exemptions.”
Explaining the amount to be paid as a cybersecurity levy, Mr. Buba said, “The arithmetic calculation is either 0.005% or 0.5%. Under the Act, the number 0.005 was converted to a percentage as a fraction, and under the amendment it was 0.5%.'' .
“Therefore, the statistics for fractions and percentages are the same.”
The lawmaker emphasized that the passage of the revised bill was due to the joint efforts of various stakeholders.
“The passage of the amendment bill was a collaborative effort involving government, industry, civil society and academia,” he said.
“They made their contributions and actively participated in the public hearings before receiving support from both houses of Congress.
“After a rigorous process, President Bola Ahmed Tinubu signed the bill into law in February 2024.”
The senator acknowledged the concerns of Nigerians, civil society organizations and other stakeholders over the current economic situation, and reassured them that the Cybersecurity Act is not aimed at punishing citizens.
Deji Elmoye, Chuks Okocha, Michael Olugbode, Emmanuel Ade, Sunday Abolisade
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