Following the controversy surrounding the proposed cybersecurity levy, the National Association Of Nigerian Students, NANS, has called on the Central Bank of Nigeria, CBN, to sensitize the general public to better understand the policy.

Recall that the CBN had, in a circular, directed banks to charge 0.5 per cent on some transactions as cyber security levy.

However, the policy generated controversies, with some citizens calling for its suspension, citing the nation’s present economic crisis.

But in a statement issued on Friday by its President, Comrade Lucky Emonefe, NAN said the apex bank’s decision would help tackle the threat in Nigerian cyberspace.

He, however, urged the CBN to engage stakeholders and other citizens to explain its intention.

The statement reads, “Recent incidents, such as the exploitation of cryptocurrency platforms like Binance for illicit financial activities amounting to billions, highlight the vulnerability inherent in our cyber domain, posing threats to the integrity of our economic system and eroding public trust in digital transactions.

“These threats pose significant risks to our national security, economic stability, and the overall privacy of our citizens.

“Therefore, we call on the CBN to engage the public and other stakeholders to better explain the bill’s genuine intent .

“It is important to dispel misconceptions circulating in sections of the media, particularly regarding the notion that the Cybersecurity Levy serves as a revenue generation tool for the Office of the National Security Adviser, ONSA”.

The Central Bank Of Nigeria (CBN) has issued a July 7, 2024 deadline for Point of Sales (PoS) operators to complete registration with the Corporate Affairs Corporation (CAC).

This was revealed during a meeting between Fintechs and the Registrar-General/Chief Executive Officer (CAC) Hussaini Magaji (SAN) in Abuja on Tuesday.

Speaking at the event, the CAC boss said the two-month timeline to register their agents, merchants, and individuals with the commission, was “in line with legal requirements and the directives of the Central Bank of Nigeria”.

“The measure aims at safeguarding the businesses of Fintech’s customers and strengthening the economy,” a statement titled ‘CAC, PoS OPERATORS AGREE TO TWO-MONTH DEADLINE TO REGISTER THEIR AGENTS AND MERCHANTS TO STRENGTHEN THE FINTECH INDUSTRY‘ issued by the CAC added.

He stressed that the action was equally backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, and the 2013 CBN guidelines on agent banking.

Magaji explained that the timeline for the registration which will expire on July 7, 2024, was not targeted at any groups or individuals but aimed at protecting businesses.

Several speakers from the Fintech industry pledged to collaborate with the commission to ensure hitch-free implementation of the directive.

Some of them, however, stressed the need for adequate and collective sensitisation, to ensure that the exercise achieved the desired results.

The Special Adviser to the President on ICT Development and Innovation, Tokoni Peter, in his remarks, pledged to ensure smooth facilitation of the process in line with the Renewed Hope Initiative of the present administration.

The representatives of Opay, Momba, Palmpay Ltd, Pay Stack, Fair Money MFB, Monie Point, and Teasy Pay present at the event, later signed up for a document to support the project.

Nigerian deposit money banks will now start charging 0.5% cybersecurity levy on transactions according to the Central Bank.

This was contained in a circular dated May 6, 2024 by Central Bank of Nigeria (CBN) to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.

“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2) (a) of the Act, ‘a levy of 0.5% (0.005) equivalent to a half percent 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 (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” the circular partly read.

The apex bank said that the implementation of the levy would start two weeks from the date of the circular.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”

CBN