Victor EzejaSocio-Economic Rights and Accountability Project (SERAP), BudgIT and 136 concerned Nigerians have filed a suit against the Nigerian government over the plan to commence the collection of cybersecurity levy from bank customers across the country.
The plantiffs filed the suit marked FHC/L/CS/822/2024 at the Federal High Court, Lagos on Friday, through their lawyer, Ebun-Olu Adegboruwa, SAN.
Join our WhatsApp ChannelThey are seeking an order of court to stop the Federal Government through the Central Bank of Nigeria (CBN) from beginning enforcement of collection of the cybersecurity levy.
Prime Business Africa had reported that the CBN had in a circular dated 6 May 2024, directed all commercial banks and other financial institutions to commence deduction of 0.5 per cent (equivalent of half percent) of electronic transactions made by bank customers at the point of origination.
READ ALSO: Cybersecurity Levy: Bank Customers To Pay N25,000 For Every N5m Transfer
The apex had said in the circular that the decision was in compliance with provisions of section 44 (2) of the Cybercrimes (Prohibition, Prevention, etc.) 2015 as amended in 2024.
According to the circular, banks and other financial institutions are to begin the collection two weeks from the date the circular was issued which should be by Monday, May 20, 2024.
It further directed that banks are to remit the collections in bulk to National Cybersecurity Fund (NCF) accounts domiciled with the CBN at the end of every month and failure to implement it would attract penalties.
However, in the suit filed by SERAP, BudgIT and 36 concern Nigerians, they said the CBN Circular directing enforcement of the levy “is unlawful and an outright violation of the provisions of the Nigerian Constitution and the country’s international obligations,” part of the suit read.
They said the Nigerian government has a legal responsibility to ensure the security and welfare of the people, as provided for under section 14(2)(b) of the Nigerian Constitution and human rights treaties to which Nigeria is a state party.
They argued that the directive is a total breach of the fundamental human rights of Nigerians as provided for in section 44 of the Nigerian Constitution and article 14 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party and also runs contrary to provisions of Sections 44(2)(a) and 58 of the Cybercrimes Act (as amended).
They further asserted that payment of cybersecurity levy as stipulated in the Cybercrimes Act strictly apply only to businesses listed in the Second Schedule to the Act and did not make any reference to bank customers.
READ ALSO: Nigerian Govt Under Pressure To Stop Cybersecurity Levy
They therefore contended that the CBN circular to all banks and other financial institutions “is a breach and misinterpretation of Sections 44(2)(a) and 58 of the Cybercrimes Act [as amended], in that it purports to incorporate customers of the bank (neither defined by the Act nor designated by the CBN as financial institutions) as those to pay the cybersecurity levy.”
The Plaintiffs also contended that the directive that the levy be paid into the National Cybersecurity Fund is unconstitutional and therefore prayed the court to declared it as so.
As contained in the suit sighted by Prime Business Africa correspondent, the plaintiffs are seeking an order of interim injunction restraining the CBN, its office, agents, privies, assigns, or any other persons acting on its instructions from enforcing collection of the levy pending the hearing and determination of the motion on notice filed alongside the suit
They also asked the court to declare that the CBN’s circular directivng financial institutions to deduct cybersecurity levy from customers’ accounts is unlawful, and breach of the provisions of Section 44, 58 and Second Schedule of the Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024; Section 14(2), 44 (1) 162 of the Nigerian Constitution 1999 (as amended).
READ ALSO: Cybersecurity Levy: Nigerian Govt Milking A Dying Economy – Obi
The plaintiffs maintained that millions of Nigerians with active bank accounts would suffer losses from deduction of cybersecurity levies from their accounts.”
“We urge the Honourable to grant the reliefs sought in the public interest and the interest of justice as well as to prevent arbitrariness and ensure the rule of law in the country.”
“Any deduction of cybersecurity levy from Nigerians’ accounts would be contrary to the provisions of section 44(2)(a) of the Cybercrimes Act 2015 as amended by the Cybercrimes Prohibition, Prevention etc) (Amendment) Act 2024 and ultra vires the CBN, and therefore illegal, null and void.”
“Section 162 (1) of the Nigerian Constitution provides that all revenues collected by or on behalf of the Government of the Federation are mandatorily required to be paid into the Federation Account save the revenue excepted by the provisions of the section.”
READ ALSO: 4 Electronic Transaction Levies Nigerians Pay As CBN Introduces Cybersecurity Levy
“The National Cybersecurity Fund established by section 44(1) of the Cybercrimes Act 2015 [as amended] into which it is required to be paid the levy of 0.5% chargeable on all electronic transactions instead of the Federation Account is unconstitutional, null, and void.”
“The CBN Circular is a breach and misinterpretation of Sections 44(2)(a) and 58 of the Cybercrimes Act [as amended], in that it purports to incorporate customers of the bank (neither defined by the Act nor designated by the CBN as financial institutions) as those to pay the cybersecurity levy.”
“The provisions of the Cybercrimes Act on payment of cybersecurity levy strictly apply only to businesses listed in the Second Schedule to the Act. These provisions make no reference to bank customers, contrary to the CBN Circular to all banks and other financial institutions.”
No date has been fixed for the hearing of the suit.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
Follow Us