The Socio-Economic Rights and Accountability Project, SERAP, BudgIT and 136 concerned Nigerians have instituted a legal action against the Central Bank of Nigeria (CBN) over its refusal to withdraw the ‘unlawful circular’ directing all banks and other financial institutions to deduct from customers’ account a cybersecurity levy.
It would be recalled that the CBN had last week ordered banks to implement a levy of 0.5% (0.005) equivalent to a half per cent of all electronic transactions, and to remit the levy to the ‘national cybersecurity fund.’
In dishing out the directive, the CBN relied on the Cybercrime Act 2015 (as amended). The directive is to be implemented by Monday, May 20, 2024.
But in the suit designated FHC/L/CS/822/2024 initiated before the Federal High Court, Ikoyi, Lagos, the plaintiffs are asking the court to determine “whether the CBN circular dated 6th May 2024, directing financial institutions to deduct from customers’ accounts a cybersecurity levy is unlawful and therefore ultra vires the CBN.
“Whether the CBN circular dated 6th May 2024, directing financial institutions to deduct from customers’ accounts a cybersecurity levy and Section 44(2)(a) of the Cybercrimes Act are not in breach of Sections 14(2), 44(1) and 162(1) of the Nigerian Constitution 1999 (as amended), and therefore unconstitutional, null, and void.”
The plaintiffs are further praying to the court for “a declaration that the CBN circular dated 6th May 2024 directing all banks and other financial institutions to deduct from customers’ accounts a cybersecurity levy is contrary to the provisions of the Cybercrimes Act and ultra vires the CBN, and therefore is illegal, null, and void.”
They are equally asking for “an order of interim injunction restraining the CBN, its office, agents, privies, assigns, or any other persons acting on its instructions from enforcing the circular dated 6th May 2024, pending the hearing and determination of the motion on notice filed contemporaneously in this suit.”
The suit instituted on behalf of the plaintiffs by their lawyer, Ebun-Olu Adegboruwa, SAN, read in part: “The CBN circular is unlawful and an outright violation of the provisions of the Nigerian Constitution and the country’s international obligations.
“Unless the reliefs sought are granted, the CBN will enforce its circular directing banks to deduct from customers’ accounts a cybersecurity levy.
“Millions of Nigerians with active bank accounts would suffer irreparable damage from the unlawful deduction of cybersecurity levies from their accounts.
“The provisions of the Cybercrimes Act on payment of cybersecurity levy strictly apply only to businesses listed in the Second Schedule to the Act. These provisions make no reference to bank customers, contrary to the CBN circular to all banks and other financial institutions.
“The Nigerian government has a legal responsibility to ensure the security and welfare of the people, as provided for under Section 14(2)(b) of the Nigerian Constitution and human rights treaties to which Nigeria is a state party.
“The CBN circular is also a blatant violation of Nigerians’ human rights including the right to property guaranteed under Section 44 of the Nigerian Constitution and Article 14 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party.
“We urge the Honourable Court to grant the reliefs sought in the public interest and the interest of justice as well as to prevent arbitrariness and ensure the rule of law in the country.”
As of the time of filing this report, no date has been fixed for the hearing of the suit.
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