A lawsuit has been filed against the Central Bank of Nigeria by the Socio-Economic Rights and Accountability Project, BudgIT, and 136 concerned Nigerians over the bank’s directive to deduct a cybersecurity levy from customers’ accounts.
This is contained in a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare.
The plaintiffs are seeking a restraining order against the CBN from enforcing the circular dated May 6, 2024, pending the hearing and determination of the motion on notice filed in the suit.
The CBN had ordered all commercial and other banks to start charging a cybersecurity levy on transactions, citing the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024.
However, the plaintiffs argue that the directive is unlawful, unconstitutional, and a breach of sections 14(2), 44(1), and 162(1) of the Nigerian Constitution 1999 (as amended).
The lawsuit, filed at the Federal High Court, Lagos State, seeks a determination of whether the CBN circular is not in breach of the Constitution and therefore null and void.
The statement reads partly, “The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy.
“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 statement noted that while the CBN’s circular “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,” the Federal 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 plaintiffs, therefore, urged the 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.”
The plaintiffs also want the court to restrain the CBN, its agents, and privies from enforcing the circular pending the hearing and determination of the motion on notice.
According to the plaintiffs, the CBN circular is a blatant violation of Nigerians’ human rights, including the right to property, and the Federal Government has a legal responsibility to ensure the security and welfare of the people.
They argue that the cybersecurity levy is an unlawful deduction from customers’ accounts and that millions of Nigerians with active bank accounts would suffer irreparable damage if the reliefs sought are not granted.
The plaintiffs are seeking the court’s intervention to prevent arbitrariness and ensure the rule of law in the country. No date has been fixed for the hearing of the suit.
