Olisa Agbakoba (SAN), former President of the Nigeria Bar Association (NBA), has spoken out against the controversial cybersecurity levy imposed by the Central Bank of Nigeria (CBN) on Nigerians.
The levy, amounting to 0.5% of all electronic transactions, was directed by the CBN to be remitted to the ‘national cybersecurity fund’ in accordance with the Cybercrime Act 2015 [as amended]. The directive is set to be implemented by Monday, May 20, 2024.
In an interview with TheCable, Agbakoba criticized the federal government’s imposition of the levy as unconstitutional and ill-conceived.
“It is not a good idea at all,” Agbakoba stated. “While it is necessary to address cybercrime through a cybersecurity act, creating a fund for the national security adviser to deploy is contrary to the constitution.”
Agbakoba announced his intention to challenge the levy in court, asserting that it violates constitutional provisions governing revenue. He emphasized that all revenue, whether from taxes or non-tax sources like the cybersecurity levy, must pass through the federation account for appropriation by the National Assembly.
“If the same National Assembly bypasses the appropriation process and channels funds directly to an agency, it is unconstitutional,” Agbakoba declared.
The former NBA President’s remarks underscore the growing concern among legal experts and stakeholders regarding the legality and implications of the cybersecurity levy, signaling potential legal battles ahead.