Senator Shehu Umar Buba, the Chairman of the Senate Committee on National Security and Intelligence, clarified on Thursday that the purpose of the controversial Cybersecurity Levy is to boost the economy and not to penalize Nigerians.
Buba explained that the Cybersecurity Levy was included in the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024.
He emphasized that the levy is not meant to be punitive and highlighted the various exemptions in place to safeguard and alleviate the burden on ordinary citizens, especially the less privileged.
Among the exemptions are salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.
Senator Buba disclosed that the Central Bank of Nigeria adequately engaged with the National Assembly before introducing the Cybersecurity Levy through the amended Act. He added that the delay in implementation was due to challenges in interpreting certain clauses.
According to him, “The Cybercrimes Act of 2015 already had provisions for imposing a Cybersecurity Levy since its inception, but the ambiguity of Section 44 led to conflicting interpretations until the amendments in 2024.”
“The levy stands at 0.5%, which is half a per cent of the total value of all electronic transactions by businesses listed in the Second Schedule to the Act.
“The amendments have addressed critical loopholes in the Act and have empowered the country to effectively execute the National Cybersecurity Programme.”