Chairman, Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, has revealed that the controversial cybersecurity levy is not targeted at individuals.
The APC Senator representing Bauchi South Senatorial District said the cybersecurity levy was aimed at financial institutions and telecoms. Allaying the fears that have permeated bank customers across the country, Buba said it was not targeted at individuals or ordinary bank customers.
Recall that the Central Bank of Nigeria, CBN, has last week announced the introduction of cybersecurity levy. The apex bank, thereafter, mandated all commercial banks to implement the directive.
But Buba said the levy is aimed explicitly at financial institutions and telecom companies. The Senator said the policy became necessary given the vulnerability of the sectors to financial crimes and cyber fraud. He said the policy will enhance cybersecurity measures and national security in the country.
This was contained in a statement made by the Senator in Abuja on Sunday.
Recall that Senator Buba sponsored the amendment to the Cybersecurity Bill. He noted that the relevant section of the Cybercrime Act is very clear about the businesses that are required to pay the levy, not the citizens.
Buba said, “The Act is very explicit about who is responsible for the payment, not Nigerian citizens or individuals. The relevant Section of the Cybercrime Act 2015 listed the businesses required to pay the levy. These are the telecommunications companies, Internet Service Providers, Banks, Insurance Companies, the Nigerian Stock Exchange, and other Financial Institutions.
“The organizations in the sectors have been listed in previous circulars by the Central Bank of Nigeria, especially in 2018. The new circular by the CBN further provided many exemptions.”
On the amount payable as a cybersecurity levy, Buba said, “It is either 0.005 or 0.5% arithmetically. The figure in the principal Act was 0.005 as a fraction. Which was converted to the percentage that became 0.5% in the Amendment. Therefore, the statistics in fractions and percentages are the same.”
Buba stated that the passage of the amendment bill was a collaborative effort of various stakeholders. He said, “The passage of the Amendment Bill was a collaborative effort involving the government, industry players, civil society.
He noted that even the academia contributed and took active part in the public hearing before and endorsement by the two chambers of the National Assembly. That after the rigorous processes, President Bola Ahmed Tinubu signed the bill into law in February 2024.”
Buba, however, acknowledged the concerns of Nigerians, civil groups, and other stakeholders about the current economic situation. He, therefore, reassured that implementing the cybersecurity law was not meant to punish citizens.
The Senator emphasized that the levy is a collective effort meant to protect national security and the economy. He said the financial burden primarily will fall on the specified businesses.
Buba said, “The Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, which President Tinubu signed into law in February, imposes a 0.5 percent (0.005). The levy is equivalent to half the value of all electronic transactions by the businesses specified in the Second Schedule of the Act.
“The levy will be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser (ONSA) shall administer.
“The circular announcing the levy also exempted some transactions from the cybercrime levy. These include loan disbursements and repayments, salary payments, intra-account transfers, and other financial transactions.”