Senior Advocate of Nigeria (SAN) Olisa Agbakoba has said that he will file a legal challenge against the controversial cybersecurity levy’s introduction.
Financial institutions were instructed to apply the cybersecurity levy on all electronic transactions by the Central Bank of Nigeria (CBN) on May 6. The 0.5 percent levy is as stated in section 44 of the Cybercrime (Prohibition, Prevention, Etc.) Amendment Act 2024, according to the top bank.
The Office of the National Security Advisor (ONSA) will oversee the administration of the levy.
Agbakoba stated in an interview with correspondent that the levy’s imposition is unlawful and not a “good idea.” “That is absolutely not a good idea.
In order to combat cybercrime, I think it is a good idea to create a cybersecurity legislation. But, he added, “it is not a good idea to set up a fund that the national security adviser will be able to use when it goes against the provisions of the constitution.
“I will hence be heading to court to contest the CBN’s imposition of charges on the banks, which will require the banks to pay almost N3 trillion annually. “That is unlawful since the constitution stipulates that all revenue—tax or non-tax, like the levy in the cybersecurity act—must first pass through the federation account before the national assembly may appropriate it.
Therefore, it is unconstitutional for the same national legislature to approve legislation that transfers funds to an agency without going through the appropriations procedure.
According to Agbakoba, the majority of the ministries, departments, and agencies (MDAs) appropriate and distribute funds to themselves that belong in the federation account, which is why the federal government is perpetually in debt.
It dates back to the days when Nigeria’s budget was perpetually in deficit. Bypassing the federation account, a large number of MDAs obtain funds directly. The Nigerian National Petroleum Company (NNPC) is the main offender.
The national government receives pocket money from the NNPC after it spends billions of dollars collecting even more trillions. That is just incorrect. According to Section 162 of the Constitution, all federal funds must be deposited into the federation account prior to being distributed.
Thus, funds are being spent by the NNPC without the national assembly’s approval. “We will use the cybersecurity fund without the national assembly’s approval. It is regrettable that legislation circumventing the procedure are being passed by the very national assembly, which ought to know that all revenue must go through the federation account.
“We talk about Nigeria being impoverished, but over 300 entities exist there that appropriate funds for their own use. The same is done by Nigerian Customs, NIMASA, TETFUND, Police Fund, ETF, and other organisations.
The federal government is bankrupt as a result of these agencies stealing all the funds. While it waits for funding, the government’s agencies have already grabbed everything. It is something that, in my opinion, needs to be contested because the federal government is currently shortchanged on funds that could be utilised to construct schools, hospitals, bridges, roads, and jobs. Only a small number of organisations keep 80% of our funds.
