Progressive Shareholders Association of Nigeria Challenges Cybercrimes Fund’s Constitutionality

The Progressive Shareholders Association of Nigeria (PSAN) has engaged Olisa Agbakoba Legal (OAL) to contest the constitutionality of the Cybercrimes Fund. OAL has filed a lawsuit at the Federal High Court, Lagos Division, under Suit No. FHC/L/CS/866/2024, naming the National Assembly and the Attorney General of the Federation as defendants.

PSAN’s challenge is based on the assertion that the National Assembly’s enactment of the Cybercrimes (Prohibition, Prevention, etc.) Amendment Act 2024 violates constitutional provisions regarding public revenue management. The Act mandates a 0.5% levy on electronic transactions, collected by commercial and payment service banks, and remitted to the National Cybercrimes Fund managed by the Central Bank of Nigeria.

According to PSAN, this arrangement contravenes Section 162 of the 1999 Constitution (as amended), which stipulates that all public revenue must be deposited into the Federation Account and appropriated according to constitutional guidelines. Furthermore, Section 59(1) requires that any expenditure of public funds receive National Assembly approval through the annual Appropriation Bill.

PSAN argues that the Cybercrimes Act’s provisions for direct revenue collection and expenditure, without legislative approval, are unconstitutional. The association contends that any law enabling such practices is null and void.

No hearing date has been set for the case.