Olisa Agbakoba Legal Challenges Constitutionality of Cybercrimes Fund at Federal High Court

Olisa Agbakoba Legal (OAL) has filed a lawsuit in the Federal High Court, Lagos Division, challenging the constitutionality of the Cybercrimes Fund established under the Cybercrimes (Prohibition, Prevention etc.) Amendment Act 2024. The lawsuit, filed on behalf of a client, argues that the Act’s provisions violate the Constitution’s stipulations regarding public revenue collection, deposit, and allocation.

The main point of contention is Section 44(2)(a) of the Act, which requires a 0.5% levy on all electronic transactions of bank customers. These funds are to be deducted by commercial and payment services banks and then sent to the National Cybercrimes Fund, situated with the Central Bank of Nigeria and managed by the Office of the National Security Adviser.

OAL contends that this process goes against the fundamental principles outlined in the 1999 Constitution of the Federal Republic of Nigeria (as amended). Section 162 states that all public revenue should be collected and deposited into the Federation Account and subsequently allocated in accordance with constitutional provisions. Additionally, Section 59(1) mandates that the National Assembly must approve all public revenue expenditure through the annual Appropriation Bill.

We argued that by bypassing these constitutional prerequisites, the Act unlawfully introduces a revenue stream and dictates its management and allocation without the required legislative oversight. We asserted that any law establishing such revenue generation and allocation mechanisms outside the framework of the Constitution is invalid.

The lawsuit specifically seeks a declaration from the Court to invalidate Section 44(2)(a) of the Cybercrimes (Prohibition, Prevention etc.) Act 2024, deeming it inconsistent with Sections 59 and 162 of the 1999 Constitution.

Contributors

Babatunde Ogungbamila

Partner
Collins Okeke

Associate Partner
Ifeoma Ezenwa

Senior Associate
Nzube Akunne

Senior Associate
Udenna Chukwulobe

Senior Associate

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