The Senate Committee on National Security and Intelligence said the levy is not meant to punish Nigerians but to protect the national security and the economy.
Chairman of the Senate Committee on National Security and Intelligence, Shehu Buba, has said the implementation of 0.5 per cent cyber crime fee on transactions was not meant to punish Nigerians but to protect the national security and the economy.
Mr Buba, the senator representing Bauchi South Senatorial District, stated this in a statement on Thursday.
The Central Bank of Nigeria (CBN), on Monday, directed banks operating in the country to start charging a cybersecurity levy on transactions.
The payment of the levy is a provision in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to half per cent of all electronic transactions value by the business specified in the Second Schedule of the Act is to be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser shall administer.
Many Nigerians have criticised the levy on the ground that the CBN is attempting to impose another tax on Nigerians.
The House of Representatives on Thursday directed the Central Bank of Nigeria to halt the implementation.
The resolution was a sequel to a motion of urgent public importance moved by the Minority Leader of the House, Kingsley Chinda.
In his statement, Mr Buba said the cybersecurity transaction levy is put in place to protect and relieve ordinary citizens, particularly the poor.
The senator said the amendment of cybercrime bill was considered by the two chambers of the National Assembly before it was passed and subsequently to assented by the president.
"The committee also underwent a transparent public hearing process, receiving contributions from various stakeholders. Both Houses of the National Assembly unanimously passed it before President Bola Ahmed Tinubu signed it into law" he said in the statement.
He explained that the provisions for the cybersecurity levy ought to have been implemented since 2015 but it was 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.
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"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 added.
Mr Buba commended the office of the National Security Adviser and the Central Bank of Nigeria (CBN) for initiating the implementation of the Act providing the levy.
