In a bold move, the Socio-Economic Rights and Accountability Project (SERAP), alongside BudgIT and 136 concerned Nigerians, have taken legal action against the Central Bank of Nigeria (CBN) over its enforcement of the cybersecurity levy. The lawsuit, filed at the Federal High Court in Lagos State under suit number FHC/L/CS/822/2024, challenges the legality of the CBN’s directive and seeks to protect the rights of Nigerian citizens.
The plaintiffs argue that the CBN’s circular, issued on May 6, 2024, mandating financial institutions to deduct a cybersecurity levy from customers’ accounts, is unlawful and unconstitutional. They contend that the levy violates various provisions of the Nigerian Constitution, including sections 14(2), 44(1), and 162(1), as well as international human rights obligations.
According to the plaintiffs, the CBN’s directive constitutes a breach of Nigerians’ rights, particularly the right to property guaranteed under the Nigerian Constitution and the African Charter on Human and Peoples’ Rights. They assert that millions of Nigerians with active bank accounts would suffer irreparable harm from the unlawful deduction of cybersecurity levies.
Furthermore, the plaintiffs challenge the establishment of the National Cybersecurity Fund, to which the levy is to be remitted, arguing that it is unconstitutional. They argue that revenue collected by or on behalf of the Government of the Federation should be paid into the Federation Account, as mandated by Section 162(1) of the Nigerian Constitution.
The lawsuit highlights the financial burden already faced by Nigerians due to existing charges on electronic transactions, such as electronic transfer fees, stamp duty, and account maintenance charges. The plaintiffs contend that the additional cybersecurity levy would exacerbate the financial strain on citizens and is therefore unjustifiable.
In light of these arguments, the plaintiffs are seeking an injunction to restrain the CBN from enforcing the circular pending the determination of the lawsuit. They urge the court to uphold the rule of law, prevent arbitrariness, and safeguard the interests of Nigerian citizens.
The legal challenge represents a significant step in holding regulatory authorities accountable and defending the rights of Nigerian citizens. As the case unfolds, it will shed light on the legality of the cybersecurity levy and its implications for financial transparency, accountability, and the rule of law in Nigeria.