Reps Halt CBN’s Implementation of Cybercrime Levy

The House of Representatives on Thursday, May 9, took a stand against the implementation of the cybercrime levy introduced by the Central Bank of Nigeria (CBN). This move came in response to concerns that the CBN’s circular on the levy could be misinterpreted by the public, leading to confusion and potential financial burdens on Nigerians.

Understanding the Issue

In compliance with the provisions of the cybercrime Act, the CBN issued a circular detailing the implementation of the cybercrime levy. However, the House of Representatives raised alarm over the potential misinterpretation of the circular, stating that it goes against section 44(2a) of the cybercrime Act. This section specifies the entities expected to pay the levy, which include GSM and telecom companies, internet providers, banks, financial institutions, insurance companies, and the Stock Exchange.
The Minority Leader, Kingsley Chinda, highlighted the concerns surrounding the CBN’s circular, pointing out that it has caused apprehension among Nigerians. At a time when the country is grappling with various economic challenges, the imposition of an additional levy on the citizens could further strain their financial capabilities.

Immediate Action Required

In response to the public outcry, the House of Representatives directed the CBN to immediately halt the implementation of the cybercrime levy. The lawmakers emphasized the importance of aligning the circular with the provisions of the cybercrime Act to avoid confusion and unnecessary financial burdens on the citizens.
The motion of urgent public importance, moved by Kingsley Chinda on behalf of the entire House, called for the withdrawal of the CBN’s earlier circular and the issuance of a revised circular that aligns with the stipulations of the Act. The legislators stressed the need for clarity and transparency in the implementation of the levy to prevent further misinterpretation.

Moving Forward

As the CBN takes steps to address the concerns raised by the House of Representatives, it is crucial for regulatory bodies to ensure that their directives are clear and in accordance with existing laws. The cybercrime levy is intended to support efforts in combating cyber threats and enhancing cybersecurity measures in the country. However, its implementation should not place undue financial burdens on the citizens.
In conclusion, the decision by the House of Representatives to halt the implementation of the cybercrime levy by the CBN underscores the need for accountability and transparency in regulatory actions. By aligning with the provisions of the cybercrime Act and addressing concerns raised by stakeholders, regulatory bodies can foster trust and confidence in their policies and initiatives.

The House of Representatives on Thursday, May 9, directed the Central Bank of Nigeria (CBN) to immediately halt the implementation of the cybercrime levy introduced by the apex bank in compliance with the provisions of the cybercrime Act. The House said the circular by the apex bank was prone to misinterpretation by Nigerians as it negates the spirit and letters of section 44(2a) of the cybercrime Act which specify those who are expected to pay the levy.

The Directive from the House

Adopting a motion of urgent public importance moved by Minority Leader, Kingsley Chinda (PDP, Rivers) on behalf of the entire members, the House asked the Central Bank to immediately withdraw its earlier circular on the implementation of the levy and issue another circular in line with the provisions of the Act. Chinda highlighted that section 44(2a) of the cybercrime act listed those expected to pay the stipulated fees, including GSM and telecom companies, internet providers, banks and other financial institutions, insurance companies, and the stock exchange.

Public Reaction and Concerns

Chinda expressed concerns that the CBN circular has caused widespread apprehension across the country, giving the impression that the levy is to be paid by Nigerians amidst other economic challenges such as the increase in the price of petroleum products. He noted that the circular has been open to various interpretations, leading to confusion and anxiety among stakeholders.

Clarification Needed

The decision by the House of Representatives to halt the implementation of the cybercrime levy by the CBN raises questions about the initial intent behind the levy and its implications for the various sectors mentioned in the cybercrime Act. What led to the misinterpretation of the circular by the CBN, and how can stakeholders ensure clarity and compliance with the provisions of the Act moving forward?

Conclusion

In conclusion, the directive from the House of Representatives to halt the implementation of the cybercrime levy by the CBN reflects the importance of clarity and transparency in regulatory measures. It is essential for regulatory bodies to ensure that policies and directives are communicated effectively to avoid confusion and misinterpretation among stakeholders. As the CBN reviews its circular in line with the provisions of the cybercrime Act, stakeholders and the general public await further clarification on the implementation of the levy and its impact on the designated sectors.