This is an A+ decision from the lower chamber of Nigeria’s parliament: “The House of Representatives has taken a firm stance against the implementation of the Central Bank of Nigeria’s (CBN) cybersecurity levy, calling for an immediate halt to its execution..

“In a motion presented by Minority Leader Kingsley Chinda (PDP Rivers) on behalf of the members, the House emphasized the need for the CBN to withdraw its previous circular on the levy and issue a new one consistent with the provisions of the Cybercrime Act. Section 44(2a) of the act specifies entities such as GSM and telecom companies, internet providers, banks, financial institutions, insurance companies, and the Stock Exchange as liable for the levy, not individual Nigerians.”

Of course they can add those “extras” to our bills. But there is a difference: at least We The People can decide not to consume those services, and get away from the levy. As we discussed here, there is no law in the books which supports what the apex bank did. We do hope this will bring this distraction to a good conclusion while we wait for another one.

I must commend the House, Senate and also the government for listening. We are saying: if you want more tax revenue, create GROWTH policies so that companies, citizens, etc can make money and pay taxes. But taxing bland bank transactions is not wisdom in any form.

This is an A+ decision from the lower chamber of Nigeria’s parliament: “The House of Representatives has taken a firm stance against the implementation of the Central Bank of Nigeria’s (CBN) cybersecurity levy, calling for an immediate halt to its execution..

“In a motion… pic.twitter.com/EvJKJSpBb5

— Ndubuisi Ekekwe (@ndekekwe) May 9, 2024

Updated: The Nigerian Senate seems to be supporting this.

Amidst anger from Nigerians, particularly the Organised Private Sector, regarding the 0.5% cybersecurity levy on electronic transactions, the Senate has defended the proposed implementation by the Central Bank of Nigeria (CBN).

By virtue of provisions of the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024, and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to half a per cent of all electronic transaction values by the businesses specified in the Second Schedule of the Act is to be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser shall administer.

Chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba, stated in a statement that “the levy is not punitive as it has numerous exemptions to protect and relieve ordinary citizens, particularly the poor.”

The Senate and House On This Matter

The Senate said that the 0.5% cybersecurity levy is the law of the land. And the House of Representatives is in agreement, but where they differ is who is going to pay it. The House thinks the citizens or individuals are not the ones to pay the levy; some companies are to make the payments. Of course, the bird which leaves the ground and perches on the anti-hill is still on the ground. If you ask telcos, banks, etc to make this payment, they will find ways to push it to the citizens!

From Chairman of the Senate Committee on National Security and Intelligence, Senator Shehu Umar Buba: “The Cybercrimes Act of 2015 has provisions for imposing a cybersecurity levy since its enactment, but the vagueness of Section 44 led to different interpretations until the 2024 amendments. The levy is 0.5%, equivalent to half a per cent of the value of all electronic transactions by businesses specified in the Second Schedule to the Act.

“The amendments addressed crucial gaps in the Act and empowered the nation to implement the National Cybersecurity Programme effectively. They also seek to realign and empower the country to combat the inadequate funding and disruptive effects of cyber threats on national security and critical economic infrastructures,” he said.

From House of Reps: “Section 44(2a) of the act specifies entities such as GSM and telecom companies, internet providers, banks, financial institutions, insurance companies, and the Stock Exchange as liable for the levy, not individual Nigerians.”

We will see how this develops.

The House of Representatives has taken a firm stance against the implementation of the Central Bank of Nigeria’s (CBN) cybersecurity levy, calling for an immediate halt to its execution. 

This directive comes in response to a circular issued by the apex bank, which the House believes is prone to misinterpretation by Nigerians and violates the provisions of the Cybercrime Act.

In a motion presented by Minority Leader Kingsley Chinda (PDP Rivers) on behalf of the members, the House emphasized the need for the CBN to withdraw its previous circular on the levy and issue a new one consistent with the provisions of the Cybercrime Act. Section 44(2a) of the act specifies entities such as GSM and telecom companies, internet providers, banks, financial institutions, insurance companies, and the Stock Exchange as liable for the levy, not individual Nigerians.

The decision by the House reflects concerns that the implementation of the levy has the potential to aggravate economic hardships faced by Nigerians, particularly in light of ongoing challenges such as the increase in petroleum product prices, and the free fall of the naira resulting in sky-high inflation. 

The circular from the CBN has stirred apprehension across the country, prompting calls for its immediate withdrawal.

Peter Obi, the former presidential candidate of the Labour Party has condemned the Cybersecurity Levy, describing it as ‘‘milking a dying economy.’’ In a statement issued on Wednesday, Obi decried the rate President Bola Tinubu’s government is increasing taxes, despite his assurances to address multiple taxation as a way of creating a conducive business environment.

‘‘The imposition of a Cybersecurity Levy on bank transactions is particularly sad given that the tax is on the trading capital of businesses and not on their profit hence will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation and high inflation rate,’’ he said.

Also, the Centre for the Promotion of Private Enterprise (CPPE) raised alarm over the adverse effects of the newly introduced cybersecurity levy and a barrage of other taxes imposed by various tiers of government in Nigeria. 

A statement signed by Dr. Muda Yusuf, the CEO of CPPE, raised concerns regarding the detrimental impact of these levies on the capacity of businesses to stimulate economic growth.

“Businesses and the generality of citizens are yet to recover from the shocks of current reforms. Inflationary pressures have not abated, high cost of living is still a major worry, operating and production costs for businesses remain elevated, amidst weak consumer purchasing power. This is not a good time to impose an additional levy both on businesses and citizens,” he said.

Socio-Economic Rights and Accountability Project (SERAP) has condemned the policy, giving the federal government a 48-hour ultimatum to retract the 0.5% cybersecurity levy imposed on Nigerians. 

The levy, directed by the CBN to be implemented effective May 20, 2024, entails a 0.5% charge on electronic transactions, with proceeds remitted to the National Cybersecurity Fund administered by the Office of the National Security Adviser (NSA), headed by former Chairman of the Economic and Financial Crimes Commission (EFCC) Nuhu Ribadu.

The CBN’s clarification indicates that the levy will be reflected in customers’ accounts as a “Cybersecurity Levy” and applied at the point of electronic transfer origination, subsequently deducted and remitted by financial institutions. Despite the CBN’s assertion that this directive aligns with previous circulars issued in 2018, criticism persists regarding its potential adverse effects on Nigerians already grappling with economic challenges.

The dawn of the Intelligent Age has brought with it a transformative wave that has reshaped the landscape of entrepreneurship. As artificial intelligence (AI) becomes increasingly integrated into various aspects of business, entrepreneurs are finding new ways to leverage this technology to drive innovation, efficiency, and growth.

A systematic literature review suggests that AI acts as a powerful enabler for entrepreneurs, impacting opportunity, decision-making, performance, and education and research. By harnessing AI, entrepreneurs can identify new market opportunities and make more informed decisions through data-driven insights. AI technologies also enhance performance by automating routine tasks, allowing entrepreneurs to focus on strategic activities that drive business growth.

In the Intelligent Age, the ability to turn ideas into successful ventures is amplified by AI’s capabilities. Entrepreneurs can now access tools that were once the domain of large corporations, such as advanced analytics, machine learning algorithms, and automation technologies. This democratization of technology enables smaller players to compete on a global stage and disrupt traditional business models.

The Impact of AI on Traditional Business Models

AI’s impact on traditional business models cannot be overstated. It has introduced automation, enabling businesses to streamline operations and improve efficiency. AI-driven data analysis provides valuable insights that inform decision-making and strategy. Personalization and customization have reached new heights, with AI’s ability to tailor products and services to individual customer preferences.

The rise of AI has also fostered collaborative ecosystems where entrepreneurs, researchers, and technologists work together to innovate. However, with great power comes great responsibility. Ethical considerations and AI governance are crucial to ensure that AI is used responsibly, and that privacy and security concerns are addressed.

Sustainability is another critical aspect of entrepreneurship in the Intelligent Age. Entrepreneurs are increasingly looking to create AI-driven solutions that are not only profitable but also environmentally friendly and socially responsible. This approach aligns with the growing consumer demand for sustainable business practices and products.

Securing funding for AI ventures is another area where the landscape has evolved. With the recognition of AI’s potential, there is an increasing willingness among investors to back AI-driven startups. Entrepreneurs must navigate this new terrain by articulating the value proposition of their AI innovations and demonstrating their potential for disruption and growth.

Entrepreneurship in the Intelligent Age is marked by the profound influence of AI. It offers immense opportunities for those willing to embrace this transformative technology. As we move forward, the synergy between entrepreneurship and AI will continue to spawn groundbreaking ventures that redefine industries and spur economic growth.

For entrepreneurs looking to thrive in this new era, understanding and integrating AI into their business strategies is not just an option—it’s an imperative for success. The Intelligent Age is here, and it’s ripe with possibilities for the bold and innovative entrepreneur. Entrepreneurship has always been about the future, and in the Intelligent Age, the future is now.