The Nigerian Senate has expressed support for the contentious Cybersecurity levy, with Senator Shehu Umar Buba, Chairman of the Senate Committee on National Security and Intelligence, stating that the levy aims to boost the economy, not penalize citizens.
Buba emphasized that the levy is mandated by the Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024, and is designed to be non-punitive, with various exemptions in place to shield and alleviate the burden on ordinary citizens, particularly low-income individuals.
These exemptions include salary payments, intra-account transfers, loan disbursements and repayments, and other financial transactions.
The lawmaker clarified that the National Assembly was thoroughly consulted by the Central Bank of Nigeria before the introduction of the Cybersecurity Levy in the amended Act, and attributed the delay in implementation to challenges in interpreting specific clauses.
He said, “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.
“The amendments addressed crucial gaps in the Act and empowered the nation to implement the National Cybersecurity Programme effectively.”
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