Chairman of the Senate Committee on Nationwide Safety and Intelligence, Senator Shehu Umar Buba, has mentioned the 0.5% cybersecurity levy introduced by the Central Financial institution of Nigeria (CBN) was not focused at people or abnormal financial institution prospects.
Buba, who sponsored the Cybercrime Modification Invoice, mentioned the levy was aimed toward monetary establishments and telecommunication corporations to guard their vulnerability to monetary crimes and cyber fraud.
The lawmaker famous that the related part of the Cybercrime Act could be very clear in regards to the companies which might be required to pay the brand new tax.
“The Act is express about who’s liable for the cost, not residents. The related Part of the Cybercrime Act 2015 listed the companies required to pay the levy: Telecommunications Firms, Web Service Suppliers, Banks, Insurance coverage Firms, Nigerian Inventory Trade, and different Monetary Establishments.
“The organisations within the sectors have been listed in earlier circulars by the Central Financial institution of Nigeria, particularly in 2018. The brand new round by the CBN additional supplied many exemptions,” the Senator added.
On the quantity payable as cybersecurity levy, he mentioned: “It’s both 0.005 or 0.5% arithmetically. The determine within the principal act was 0.005 as a fraction, which was transformed to the share that grew to become 0.5% within the modification. Subsequently, the statistics in fractions and percentages are the identical.”
The legislator highlighted that the passage of the modification invoice was a joint effort between the federal government and numerous stakeholders.
“Throughout my presentation of the invoice on the Senate final yr, I expressed concern over the nation’s annual lack of $500 million brought on by cybercrime, together with hacking, identification theft, cyber terrorism, harassment, and web fraud.
“The passage of the modification invoice was a collaborative effort involving the federal government, business gamers, civil society, and academia. They participated within the public listening to earlier than the endorsement by the 2 chambers of the Nationwide Meeting.
“After rigorous processes, President Bola Ahmed Tinubu signed the invoice into regulation in February 2024. The modification is a complete authorized framework that can deter, examine, pursue, and prosecute cybercriminals, amongst different safety and financial advantages.”
The Senator, nonetheless, acknowledged the issues of Nigerians and civil society teams in regards to the present financial scenario within the nation however insisting that the implementation of the cybersecurity regulation was not meant to punish the individuals.
The Cybercrime Act 2024 imposes a 0.5 per cent (0.005%) levy equal to half the worth of all digital transactions by the companies specified within the Second Schedule of the Act. The tax can be remitted to the Nationwide Cybersecurity Fund, beneath the Workplace of the Nationwide Safety Adviser (ONSA).
Nonetheless, a round issued by the CBN confirmed the exemption of sure transactions, together with mortgage disbursements and repayments, wage funds, intra-account transfers, amongst others.