SERAP, Others Drag CBN To Court Over Cybersecurity Levy

Socio-Economic Rights and Accountability Project (SERAP), has urged the Federal High Court infrom enforcing the circular’ directing all banks and other financial institutions to deduct from customers’ accounts a ‘cybersecurity levy’.

In the suit filed by BudgIT and 136 other Nigerians, the plaintiffs are specifically seeking 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 May 6, 2024, pending the hearing and determination of the motion on notice filed contemporaneously in this suit.

The plaintiffs are asking the court to determine whether the CBN circular directing financial institutions to deduct from customers’ accounts a cybersecurity levy is unlawful and, therefore, ultra vires the CBN.

They are also urging the court to determine whether the CBN circular 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 asking the court for a declaration that the CBN circular 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.

The plaintiffs, in an affidavit filed on their behalf by their lawyer Ebun-Olu Adegboruwa, averred that the CBN circular is unlawful and an outright violation of the provisions of the Nigerian Constitution and the country’s international obligations.

They also stated that unless the reliefs sought are granted, the CBN will enforce its circular directing banks to deduct from customers’ accounts a cybersecurity levy and that this will cause irreparable damage to millions of Nigerians with active bank accounts.

The plaintiffs maintained that the provisions of the Cybercrimes Act on payment of cybersecurity levy strictly apply only to businesses listed in the Second Schedule to the Act, and these provisions make no reference to bank customers, contrary to the CBN circular to all banks and other financial institutions.

No date has been fixed for the hearing of the suit.