Civil Society Organizations Take Legal Action Against CBN Regarding Cybersecurity Levy: Advocating For Citizens' Rights

Recall that the apex bank recently directed banks to impose a levy of 0.5% (0.005), amounting to half a percent of all electronic transactions, and remit it to the ‘national cybersecurity fund.’ This directive, based on the Cybercrime Act 2015 [as amended], is slated for implementation by Monday, May 20, 2024.

In the lawsuit numbered FHC/L/CS/822/2024 filed at the Federal High Court, Lagos, last Friday, the Plaintiffs seek the court’s determination on the legality of the CBN Circular instructing financial institutions to levy customers’ accounts with a cybersecurity levy.

The Plaintiffs also seek clarification on whether the CBN Circular dated May 6, 2024, and section 44(2)(a) of the Cybercrimes Act violate sections 14(2), 44(1), and 162(1) of the Nigerian Constitution 1999 [as amended], rendering them unconstitutional, null, and void.

Furthermore, the Plaintiffs demand a declaration that the CBN Circular directing all banks and financial institutions to levy a cybersecurity levy on customers’ accounts contravenes the provisions of the Cybercrimes Act and exceeds the CBN’s authority, thus being illegal and null.

They also request an interim injunction to restrain the CBN from enforcing the Circular dated May 6, 2024, until the motion on notice filed concurrently with this suit is heard and determined.

The lawsuit, filed on behalf of the Plaintiffs by their lawyer Ebun-Olu Adegboruwa, SAN, argues that the CBN Circular violates the Nigerian Constitution and international obligations of the country.

It contends that the levy, if enforced, would inflict irreparable harm on millions of Nigerians with active bank accounts and would be contrary to the provisions of the Cybercrimes Act.

Additionally, it emphasizes the breach of Nigerians’ human rights, including the right to property, and calls for the reliefs sought in the public interest and to uphold justice and the rule of law in the country.

The Plaintiffs, who are customers of commercial banks in Nigeria, stress that the CBN’s Circular misinterprets provisions of the Cybercrimes Act, incorporating bank customers as those liable to pay the cybersecurity levy, which is beyond the Act’s scope.

They highlight the exorbitant fees already charged by commercial banks for electronic transactions and emphasize the unconstitutionality of diverting levy proceeds to the National Cybersecurity Fund instead of the Federation Account.

The lawsuit awaits a hearing date to be fixed by the court.