The House of Representatives has called on the Central Bank of Nigeria (CBN) to retract its recent circular instructing banks to initiate a 0.5 per cent cybersecurity levy on all electronic transactions within the country, according to The Nation.

The motion to halt and revise the implementation of the cybersecurity levy was raised by Kingsley Chinda, the representative for the Obio/Akpor Constituency.

The circular, distributed to commercial, merchant, non-interest, and payment service banks, outlined the commencement of the levy from May 6, 2024. It specified that the levy would be deducted at the point of electronic transfer origination and reflected in the customer’s account with the description “Cybersecurity Levy.”

Chinda expressed concerns about the directive’s broad interpretation, particularly regarding who bears the burden of the levy. He highlighted discrepancies between the circular and the Cybercrimes Act, noting that the Act designates specific businesses for such levies.

The ambiguity surrounding the directive has sparked public outcry, with civil society organizations and citizens voicing opposition to what they perceive as an additional financial burden on Nigerians, especially amid economic challenges.

Chinda emphasized the need for immediate action to prevent erroneous implementation, particularly considering the current economic climate marked by subsidy removals and rising inflation.