Levy On Cyber Security Not Punitive – Senate

Chairman, Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, has cleared the air on controversy surrounding the proposed implementation of the Cybersecurity levy by the Central Bank of Nigeria (CBN).

According to him the levy is provided for in the Cybercrimes (Prohibition, Prevention, (Amendment) Act, 2024.

He clarified that the levy is not punitive as it has numerous exemptions to protect and relieve ordinary citizens, particularly the poor. Stressing that the exemptions include salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.

Senator Buba said the amendments to the Cybercrimes Act were a collaborative effort with the National Assembly’s ICT and Cyber Security Committee.

He explained that the committee also underwent a transparent public hearing process, receiving contributions from various stakeholders.

Senator Umar emphasised that the provisions for the cybersecurity levy have been in place since 2015 but were delayed due to unclear interpretations and applications.

“The Cybercrimes Act of 2015 has provisions for imposing a cybersecurity levy since its enactment, but the vagueness of Section 44 led to different interpretations until the 2024 amendments. The levy is 0.5%, equivalent to half a per cent of the value of all electronic transactions by businesses specified in the Second Schedule to the Act.

“The amendments addressed crucial gaps in the Act and empowered the nation to implement the National Cybersecurity Programme effectively. They also seek to realign and empower the country to combat the inadequate funding and disruptive effects of cyber threats on national security and critical economic infrastructures,” he said.

Senator Umar underscored the criticality of the cybersecurity levy’s implementation, stating that its prudent utilisation will bolster the nation’s capacity to evaluate, execute, upgrade, and fortify the security of national critical economic infrastructure, thereby safeguarding the nation’s cyberspace.

James Itodo, Edited By Grace Namiji