BudgIT, Socio-Economic Rights and Accountability Project, SERAP, and 136 Nigerians have dragged the Central Bank of Nigeria, CBN, before a Federal High Court sitting in Lagos, “over its failure to withdraw the patently unlawful ‘Circular’ directing all banks and other financial institutions to deduct from customers’ account a ‘cybersecurity levy.’
Recall that CBN had last week directed banks to implement a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions, and to remit the levy to the ‘national cybersecurity fund.’
The CBN relied on the Cybercrime Act 2015, as amended, while the directive is to be implemented by Monday, May 20, 2024.
In the suitfiled on Friday, the plaintiffs are asking the court to determine “whether the CBN Circular dated May 6, 2024, directing financial institutions to deduct from customers’ accounts a cybersecurity levy is unlawful and therefore ultra vires the CBN.”
The plaintiffs are also asking the court to determine “whether the CBN Circular dated May 6, 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 asking the court for “a declaration that the CBN Circular dated May 6, 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.”
The plaintiffs are 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.”
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The suit filed 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.”
The Plaintiffs are therefore asking the court for the following reliefs:
*A declaration that the Circular issued by the CBN and dated May 6, 2024, directing all banks and other financial institutions to deduct from customers’ accounts cybersecurity levy is manifestly misleading, extorting and a breach and misinterpretation of the provisions of Section 44, 58 and Second Schedule of the Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024 and ultra vires the CBN, and therefore is illegal, null and void.
*A declaration that the the Circular issued by the CBN and dated May 6, 2024, directing all banks and other financial institutions to deduct from customers’ accounts cybersecurity levy and section 44(2)(a) of the Cybercrimes Act are inconsistent with, and a breach of the provisions of Section 14(2), 44 (1) 162 of the Nigerian Constitution 1999 [as amended] and therefore unconstitutional, null and void.
*An order setting aside the the Circular issued by the CBN and dated May 6, 2024, directing all banks and other financial institutions to deduct from customers’ accounts cybersecurity levy, for being misleading, extorting and a breach of the provisions of Section 44, 58 and Second Schedule of the Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024.
*An order setting aside the Circular issued by the CBN and dated May 6, 2024, directing all banks and other financial institutions to deduct from customers’ accounts cybersecurity levy and section 44(2)(a) of the Cybercrimes Act, for being inconsistent with, and a breach of the provisions of Section 14(2), 44 (1) and 162 of the Nigerian Constitution 1999 [as amended] and therefore unconstitutional, null and void.
*An order restraining the Central Bank of Nigeria, including its agents, assigns, privies and or representatives or such other persons acting on its behalf, from enforcing the the Circular issued by the CBN and dated May 6, 2024, against all banks and other financial institutions and their customers.
*Any order(s) that the court may deem fit to make in the circumstance of this suit.
No date has been fixed for the hearing of the suit.
