The presidential candidate of the Labour Party in the last general election, Mr. Peter Obi, has described the Central Bank of Nigeria’s imposition of a 0.5% cybersecurity levy on Nigerians as a way of exploiting a “dying economy” and struggling Nigerians.
In a series of X posts on Wednesday, the former Anambra State governor said the tax is on the trading capital of businesses and not on their profits, which will further erode “whatever is left of their remaining capital” in the economy.
Furthermore, Obi said that policies like this not only impoverish citizens but also make the country’s economic environment less competitive.
“The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.
“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.
“Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive,” Obi said.
FG should reduce tax, not add to it
Speaking further, Obi said the Federal Government should at this time be working on reducing the number of taxes, rather than increasing them.
He also raised questions about how the Office of the National Security Adviser (ONSA) is now becoming a revenue-generating arm of the government instead of its mandate to protect the lives of the Nigerian people.
“At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue-collecting centre?
“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”, Obi added.
Backstory
On Monday, May 6, the CBN issued a circular ordering banks to initiate the deduction of a 0.5% cybersecurity levy to be remitted to the account of the Office of the National Security Adviser (ONSA).
- The deduction and collection of the cybersecurity levy follow the enactment of the 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act of 2024, which mandates a 0.5% deduction of the value of all electronic transactions for the National Cyber Security Fund, administered by the ONSA.
- The circular noted that the deduction would be labelled as the “Cybersecurity Levy,” and relevant financial institutions should begin deductions within two weeks of the circular.
- Moreover, the apex bank stated that the penalty for defaulting is as prescribed in the amended Cybercrime Prohibition and Prevention Act, which carries a fine amounting to no less than 2% of the turnover of the defaulting business, among other penalties.
- The new policy is expected to take effect in two weeks, according to a circular jointly signed by Chibuzor Efobi, CBN’s Director of Payment System Management, and Haruna Mustafa, Director of Financial Policy and Regulation.
