Buba, the sponsor of the amendment bill, explained to Economic Confidential, a business-focused magazine, that the cybersecurity levy targets financial institutions and telecommunication companies due to their susceptibility to financial crimes and cyber fraud.
He clarified that the Cybercrime Act specifies which businesses are obligated to pay the tax, such as telecommunications companies, internet service providers, banks, insurance companies, the Nigerian Stock Exchange, and other financial institutions.
Regarding the levy amount, Buba stated that it is either 0.005 or 0.5%, which is the same statistically, with the fraction in the principal act converted to a percentage in the amendment.
He emphasized that the passage of the amendment bill was a collaborative effort involving the government, industry players, civil society, and academia, aimed at addressing the country’s annual loss of $500 million due to cybercrime.
Although acknowledging concerns about the economic situation, Buba assured that implementing the cybersecurity law is not intended to punish the people.
The Cybercrime Act 2024 imposes a 0.5% levy on all electronic transactions by specified businesses, with proceeds remitted to the National Cybersecurity Fund under the Office of the National Security Adviser (ONSA).
A circular from the CBN confirmed exemptions for certain transactions, including loan disbursements and repayments, salary payments, and intra-account transfers.