‘It has substantial benefits’ — group backs cybersecurity levy

A coalition known as Nigeria First Project (NF-PRO) says the cybersecurity levy is not meant to punish Nigerians.

On May 6, the Central Bank of Nigeria (CBN) directed banks and other financial institutions to implement a 0.5 percent cybersecurity levy on electronic transfers.

The regulator said the policy would take effect in two weeks and charges would be remitted to the national cybersecurity fund, which would be administered by the office of the national security adviser (ONSA).

The CBN directive followed the amendment of the Cybercrime Act.

Nigerians have criticised the controversial cybersecurity levy, demanding its immediate suspension.

Last week, the house of representatives said the CBN directive on the levy is “ambiguous” and must be withdrawn.

Kingsley Chinda, minority leader of the house and lead sponsor of the motion, said the directive has left Nigerians confused about whether they or the banks are to pay the levy.

Addressing a press conference on Tuesday in Kano, Hamza Saulawa, coordinator of the coalition, said the levy is intended to combat cybercrime in the country.

“In the face of growing cybercrimes in Nigeria with its attendant consequences on our nation, we find the ongoing hysterical vicious campaign against the cybersecurity levy incongruence with the desire of many patriotic Nigerians to see that our hitherto country’s good image is restored,” Saulawa said.

“It is obvious that the conversation is being manipulated by the section of the minority vocal elites to look as if the levy is imposed to punish the masses.

“This is happening despite the clarification made by the chairman, senate committee on national security and intelligence, senator Shehu Umar Buba. We feel that this kind of debate in which many take an extreme end is not helpful at all.”

The coalition asked Nigerians to “objectively and without any prejudice” examine the legislation “in its entirety”.

“They would surely see its great prospects for our country,” Saulawa said.

“From the outset, it is important for Nigerians to note that cybercrime is not only undermining Nigeria’s economy but also has continued to tarnish our image globally,” he added. 

“Today, innocent Nigerians all over the world are being unfairly treated with suspicion at airports, embassies, motor parks, etc.

“Another frightening trend is today: many young people are joining the illicit cybercrime venture to make fast money. Some of these youths wrongly think that going to school is a scam.

“Now we have an opportunity to reverse this trend. Unfortunately, there are some people who think imposing a 0.5 percent levy on some companies and institutions that are listed in the second schedule of the Cybercrime Act 2024 is too much. But on the other hand, they are not talking of the social and economic losses of the cybercrime Nigeria incurs.”

The coalition said the antagonists of the cybersecurity levy are not “looking at the substantial benefits”.

“Taking into cognizance the catastrophic impact of terrorism on our country, one can think that no saner person will oppose any counterterrorism initiative, especially on the premise of the levy,” the group said.

“Therefore, we haven’t seen anything odd in this levy so long it will be judiciously used as prescribed in the Act. And we have full confidence in the sincerity of purpose of the President Bola Tinubu-led administration.”

Shehu Buba, chairman of the senate committee on national security and intelligence, had said the cybersecurity levy is not targeted at individuals or bank customers.

Buba, who sponsored the amendment bill, said the levy is aimed at financial institutions and telecommunication companies as they are vulnerable to financial crimes and cyber fraud.