In a bid to challenge what they term an “unlawful circular,” the Socio-Economic Rights and Accountability Project (SERAP), alongside the not-for-profit organization, BudgIT and 136 concerned Nigerians, have taken legal action against the Central Bank of Nigeria (CBN) regarding the recently introduced cybersecurity levy.
The lawsuit, filed under suit number FHC/L/CS/822/2024 at the Federal High Court in Lagos State, seeks to determine the legality of the CBN’s directive to financial institutions to deduct a cybersecurity levy from customers’ accounts.
According to Kolawole Oluwadare, Deputy Director of SERAP, the plaintiffs are questioning whether the CBN circular dated May 6, 2024, is ultra vires and unconstitutional.
The controversial levy, amounting to 0.5 per cent of all electronic transactions, is intended to be remitted to the National Cybersecurity Fund, administered by the Office of the National Security Adviser.
Despite reports of President Bola Tinubu’s call for suspension and review of the policy, the plaintiffs assert that the directive is in violation of constitutional provisions and international obligations.
Ebun-Olu Adegboruwa, SAN, representing the plaintiffs, argued that the levy contradicts the Cybercrimes Act, which applies exclusively to businesses listed in the Act’s Second Schedule. He emphasized the potential irreparable harm to millions of Nigerian bank account holders if the levy is enforced.
Additionally, the plaintiffs contend that the establishment of the National Cybersecurity Fund, outside the purview of the Federation Account as mandated by the Nigerian Constitution, is unconstitutional. They highlight existing burdens on bank customers, such as electronic transfer charges and stamp duty fees, further adding to the financial strain.
In a statement, SERAP emphasized that the CBN’s directive violates Nigerians’ rights to property and constitutes a disregard for their security and welfare, as guaranteed by the Nigerian Constitution and international treaties.
The plaintiffs call upon the court to intervene in the public interest and ensure adherence to the rule of law, is pending a hearing date yet to be scheduled.