Cybersecurity levy: Only banks, telcos, NSE affected by Cybercrime Act, says OSJRP

Ayodele Olalere

The Open Society on Justice Reform Project (OSJRP) has said the new cybersecurity levy introduced by the Central Bank of Nigeria (CBN) would only affect businesses such as banks, telecommunication and insurance companies and the Nigerian Stock Exchange.

 

 

 

While reacting to the widespread condemnation which has greeted the move by the Federal Government, the Executive Director and Principal Partner, Open Society on Justice Reform Project,  Samuel Akpologun, in his article ‘National Cybersecurity Levy Implementation in Nigeria: Concerns and Matters Arising’ noted that the provision of the Cybercrime Prohibition, Prevention Act, have been misunderstood by many Nigerians.

 

 

 

 

 

“The principal Act clearly states that such levy would be charged to the account of businesses listed in the 2nd schedule of the Act.  It is therefore imperative to take a look at the businesses so referred to and they include GSM service providers and all telecommunication companies, internet service providers, banks and other financial Institutions, insurance companies and Nigerian Stock Exchange,”  he wrote.

 

 

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He added: “ With this, it would appear that only the above listed businesses are affected by the levy and it would not be difficult for the banks to implement the same considering the standard accounting system of such firms which are mainly well established conglomerates.’

 

 

 

 

 

Akpologun however expressed concerns over likely moves by banks to adopt blanket implementation of the Act on all transactions made by Nigerians.

 

 

 

 

 

 

 

“The question was that if banks were to levy everyone and in view of the fact that some transactions were to be exempted, how will the bank be able to determine exactly what each transaction is about, considering the fact that the banks do not have access to the details of each transaction beyond the narration appended to them?

 

 

 

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This therefore led to the irresistible conclusion that banks would adopt blanket application of the levy to transactions, potentially subjecting a wide range of transactions to the levy. Such a broad implementation could lead to unintended consequences and disproportionate burdens on certain sectors or individuals,” he wrote.

 

 

 

 

 

 

He therefore urged Nigerians ‘to be on the lookout for now to see if any bank would pretend not to understand the provision of the Act and seek to impose the levy on the transactions of citizens or companies that are not listed in the Second Schedule of the Act.’

 

 

 

 

 

 

 

“Such banks or financial institutions should be liable to serious legal rebuke! The levy shouldn’t concern the ordinary man on the street, small companies and even NGOs unless the person is involved with the above stated business concern.”

 

 

 

 

 

Central Bank of NigeriaOpen Society on Justice Reform ProjectSamuel Akpologun
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