House of Representatives Calls for a Scrap of CBN Levy Despite Its Suspension

In a circular, the Central Bank of Nigeria (CBN) has instructed all deposit money banks and other financial institutions to suspend processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates until September 30, 2024.

Adetona Adedeji, the acting director of banking supervision for the apex bank, signed the circular to deposit money banks on May 6, 2024.

At the same time as the new directive, the CBN ordered deposit money banks to begin imposing a 0.5% cybersecurity levy on transactions, which has provoked protest.

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The circular read, "Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for Corporates as contained in the 'Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions' issued on December 20, 2019," CBN said.

"The Central Bank of Nigeria hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.

"Consequently, all financial institutions regulated by the CBN should continue to accept all cash deposits from the public without any charges until September 30, 2024," the circular read.

However, on Thursday, members of the House of Representatives asked the Central Bank of Nigeria (CBN) to cancel the circular directing financial institutions to commence implementation of the 0.5% cybersecurity levy, describing it as "ambiguous."

This happened in reaction to a motion by the Honourable Kingsley Chinda, who emphasised the urgent need to stop and change the cybersecurity levy's implementation.

The House of Representatives states that the CBN will "issue a more understandable one" instead of the original circular.

Honourable Chinda alerted the House to various interpretations of the CBN directive that do not align with the requirements outlined in the Cybersecurity Act.

The House then expressed concern that if quick action were not taken to address the issues regarding interpreting the Cybersecurity Act and the CBN directive, the Act would be implemented incorrectly.

On May 7, the CBN reported that four (4) deposit money banks in Nigeria had upgraded their banking licenses from regional to national, bringing the total number of banks nationwide to 44, following the urgency of recapitalization.

The Central Bank of Nigeria (CBN) followed by releasing a list of approved financial institutions, including seven foreign banks, fifteen national banks, four regional banks, four non-interest banks, six merchant banks, seven financial holding companies, and one representative office.