The Senate has clarified that the recently introduced 0.5% cybersecurity levy on certain banking transactions by the Federal Government is not intended as a punishment for Nigerians. Senator Shehu Umar Buba, Chairman of the Senate Committee on National Security and Intelligence, highlighted exemptions aimed at protecting ordinary citizens, particularly the economically disadvantaged.
These exemptions encompass salary payments, intra-account transfers, loan disbursements and repayments, and various other financial transactions. The cybersecurity levy is outlined in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024.
Senator Buba explained that the amendments to the Cybercrimes Act were the result of collaborative efforts between the National Assembly and the ICT and Cyber Security Committee. The legislation underwent a transparent public hearing process, receiving input from diverse stakeholders before being unanimously adopted and signed into law by President Bola Ahmed Tinubu.
He emphasized that while provisions for the cybersecurity levy have existed since 2015, clarity was lacking until the 2024 amendments. The levy, set at 0.5%, is applicable to specified electronic transactions by businesses outlined in the Second Schedule to the Act.
The implementation of the cybersecurity levy, according to Senator Umar, is crucial for bolstering the nation’s capacity to enhance the security of critical economic infrastructure and safeguard the cyberspace.
The legislative committee commended the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria (CBN) for initiating the operationalization of the levy, asserting that its benefits outweigh any drawbacks.
While acknowledging the initial controversy surrounding the announcement, the exemptions provided aim to mitigate its impact on certain transactions, including loan disbursements and repayments, salary payments, and interbank transfers, among others.
Senator Buba appealed for public support, assuring that the policy will yield significant benefits for citizens in the long run.
