By Seyi Odewale
A rights group, the Socio-Economic Rights and Accountability Project (SERAP), and the Nigeria Labour Congress (NLC) yesterday condemned the directive by the Central Bank of Nigeria (CBN) to charge a 0.005 percent Cybersecurity Levy on electronic transfers, saying it is unconstitutional, violates the rights of Nigerians and will inflict severe social security on workers and the masses.
They, therefore, called on the Federal Government, especially the CBN to reverse the directive with immediate effect.
In their separate statements, they urged President Bola Tinubu to weigh in and immediately direct the CBN to withdraw the cybersecurity levy on Nigerians as it patently violates the provisions of the Nigerian Constitution 1999 (as amended) and the country’s international human rights obligations and commitments.
According to SERAP, which issued a 48-hour ultimatum for the withdrawal of the CBN directive imposing a cybersecurity levy on Nigerians, the directive was not only unlawful but also repressive.
In a statement by its Deputy Director, Kolawole Oluwadare, SERAP urged President Tinubu “to stop Mr Nuhu Ribadu and the office of the National Security Adviser (NSA) from implementing Section 44 and other repressive provisions of the Cybercrimes Act 2024 as it flagrantly violates the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights and International Covenant on Civil and Political Rights to which Nigeria is a state party.”
It also urged him “to direct the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN to immediately prepare and present a bill to amend Section 44 and other repressive provisions of the Cybercrimes Act 2024 to the National Assembly so that those provisions can be brought in line with the Nigerian Constitution and the country’s international human rights obligations.”
The statement said: “The Tinubu administration must within 48 hours withdraw the patently arbitrary and unlawful CBN directive purportedly imposing cybersecurity levy on Nigerians.” Adding: “Section 44(8) criminalizing the non-payment of the cybersecurity levy by Nigerians is grossly unlawful and constitutional.”
The group said it has instructed its lawyer to prepare the necessary court papers should the government fail or neglect to act. “Our lawyer, Ebun-Olu Adegboruwa, SAN, is already preparing the necessary court papers should the administration fail or neglect to act as recommended,” it said.
It continued: “The administration must urgently take concrete and effective measures to ensure the repeal of section 44 and other repressive provisions of the Cybercrimes Act 2024.”
“If the unlawful CBN directive is not withdrawn and appropriate steps are not taken to amend the repressive provisions of the Cybercrimes Act within 48 hours, SERAP shall consider appropriate legal actions to compel the Tinubu administration to comply with our request in the public interest.”
“Withdrawing the unlawful CBN directive and repealing the repressive provisions of the Cybercrimes Act 2024 will be entirely consistent with President Tinubu’s constitutional oath of office requires public officials to uphold the provisions of the constitution, and the rule of law and abstain from all improper acts.”
It added: “The repressive provisions of the Cybercrimes Act 2024 are clearly inconsistent and incompatible with the public trust and the overall objectives of the Constitution. A false oath lacks truth and justice. The oath statements require the oath takers to commit to uphold and defend the Constitution.”
“Section 14(2)(b) of the Nigerian Constitution of 1999 [as amended] provides that, ‘the security and welfare of the people shall be the primary purpose of government.”
“If the unlawful CBN directive is not withdrawn and appropriate steps are not taken to amend the repressive provisions of the Cybercrimes Act within 48 hours, SERAP shall consider appropriate legal actions to compel the Tinubu administration to comply with our request in the public interest.”
“Withdrawing the unlawful CBN directive and repealing the repressive provisions of the Cybercrimes Act 2024 will be entirely consistent with president Tinubu’s constitutional oath of office requires public officials to uphold the provisions of the constitution, and the rule of law and abstain from all improper acts.”
“The repressive provisions of the Cybercrimes Act 2024 are clearly inconsistent and incompatible with the public trust and the overall objectives of the Constitution. A false oath lacks truth and justice. The oath statements require the oath takers to commit to uphold and defend the Constitution.”
Also, the NLC while condemning the directive, said the cyber security levy will further impoverish the people as it was another gang up by the ruling elite to continue its extortion and exploitation of hapless workers and the masses.
A statement by its President, Comrade Joe Ajaero, said: “The Nigeria Labour Congress (NLC) vehemently condemns the recent directive by the Central Bank of Nigeria (CBN) to levy a 0.005 percent Cybersecurity Levy on electronic transfers. This levy, to be implemented by deduction at the transaction origination, is yet another burden on the shoulders of hardworking Nigerians.
“In a circular by the CBN, the directive mandates banks and payment service operators to affect these deductions, effective next two weeks. This move, ostensibly aimed at bolstering cybersecurity measures, threatens to exacerbate the financial strain already faced by the populace.”
However, the NLC maintained that imposing such a levy on electronic transactions, without due consideration for its implications on workers and the vulnerable segments of society would be unjustifiable.
“Imposing such a levy on electronic transactions, without due consideration for its implications on workers and the vulnerable segments of society, is unjustifiable. This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities.
“We see in this levy another gang up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses so that their cronies in various financial centres can continue wallowing in unbridled consumption.
Ajaero recalled that during the May Day celebration, Labour called on the government to prioritise the welfare of the workers and the masses in its policy directions and actions against seeking profit that would further put pressure on the people.
“We wonder when it has become a crime for the people to save their meagre incomes in the banks and whether it is the intention of the government to encourage people to resort once again to keeping cash and using cash transactions instead of electronic transfers which have seemed to have become an undoing for the people? he asked.
He continued: “While the CBN has exempted interbank transfers and loan transactions from this levy, the broader impact on everyday transactions cannot be overlooked. Such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen.
“Domestic manufacturers and other businesses are already shuttering as a result of the stifling socioeconomic environment yet, instead of creating a business-friendly environment to encourage greater investments in the economy, the opposite seems to be the case.”
Ajaero contended that the threat of fines amounting to not less than two percent of an institution’s annual turnover for non-compliance would add further pressure on financial institutions, potentially leading to a trickle-down effect on consumers.
“Definitely, the businesses will pass down these costs to consumers which will lead to further inflation in an economy that is already in the grips of hyper-inflation”, asking: “How would domestic manufactured goods and services remain competitive in the midst of all these costs and how would the businesses expand capacity thus employ more Nigerians when they cannot sell their products because of high prices?
According to him, monies raised in the past have not helped in making lives better for the citizenry nor were they seen in better infrastructural provisions.
“This directive comes on the heels of the recent implementation of stamp duty charges on mortgage-backed loans and bonds by the Federal Government, further straining the financial resources of Nigerians.
“These successive levies only serve to deepen the financial burden on citizens already grappling with economic challenges.
The NLC, however, calls on the Federal Government to reconsider these directives and prioritize policies that alleviate the financial burdens of Nigerians. “We urge a collaborative approach between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not unduly burden the populace.
