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CYBERSECURITY LEVY
Nigeria, Africa’s largest economy, continues to face an onslaught of cyber-attacks, with organisations experiencing an average of 3,759 incidents weekly.
Global tax and advisory firm, KPMG has criticized the federal government and Central Bank of Nigeria (CBN) on its move to implement the cybercrime levy stipulated in the 2024 Cybercrimes Amendment Act stating that no country can tax its way to prosperity.
Members of the House of Representatives have demanded that the Central Bank of Nigeria (CBN) temporarily withdraws the circular instructing banks to start implementing the 0.5% cybersecurity levy, labeling it as “ambiguous.”
ACMAN says 0.5% cybersecurity levy ill-timed as it negates efforts to address financial exclusion
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has asked the federal government and Central Bank of Nigeria (CBN) to cap the maximum amount for the new introduced cybersecurity levy at N500 to ameliorate the burden on the private sector.
The presidential candidate of the Labour Party in the last general election, Mr. Peter Obi, has described the Central Bank’s imposition of a 0.5% cybersecurity levy on Nigeria as a way for the federal government to exploit a “dying economy”.
On May 6, 2024, the Central Bank of Nigeria (CBN) ordered banks to begin the process of deducting cybersecurity levy which will be administered by the Office of the National Security Adviser (NSA).
The Centre for the Promotion of Private Enterprise, (CPPE) has stated that the newly introduced cybersecurity levy and other numerous taxes imposed by federal, state and local government impedes the capacity of businesses to drive economic growth, leads to job losses and fuels inflation across the country.
The Nigeria Labour Congress (NLC) has opposed the Central Bank of Nigeria (CBN)’s directive for all financial institutions to impose a 0.5% cybersecurity tax on every electronic transaction.
As Nigeria grapples with a staggering inflation rate of 33.2% in March, the recent directive from the Central Bank of Nigeria (CBN) regarding a cybersecurity levy has ignited widespread discontent among the populace.
While the levy is to be charged on all electronic transactions and applied at the point of transfer origination, the CBN in an appendix to the circular, listed 16 transactions exempted from the levy.
The Central Bank of Nigeria (CBN) has ordered banks to enact the process of deduction of cyber security levy to be administered by the office of the National Security Adviser (NSA).