‘It’s Inconceivable to Expect Suffering Citizens to Fund All Government Activities’, Obi Condemns Cybersecurity Levy
The Presidential candidate of Labour Party (LP) in the 2023 election, Mr. Peter Obi has condemned the recently imposed cybersecurity levy stating that “it is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government”.
The Central Bank of Nigeria (CBN) in a circular signed by its Director of Payments Systems Management, Chibuzor Efobi, and Director of Financial Policy and Regulation, Haruna B. Mustafa on Monday, May 6 ordered banks and other financial institutions to commence the process of deducting cybersecurity levy which will be administered by the Office of the National Security Adviser (NSA).
According to the circular, the deduction and collection of the cybersecurity levy is the sequel to the enactment of the 2024 Cybercrime (prohibition, prevention, etc) Amendment Act of 2024, which provides for a 0.5% deduction of the value of all electronic transactions to the National Cyber Security Fund, which would be administered by the office of the NSA.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).
“Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows:
“Calculate the levy based on the total electronic transfer origination, then deducted and remitted by the financial institution.
“The deducted amount shall be reflected in the customer’s account with the narration: ‘Cybersecurity Levy’,” the circular reads.
Meanwhile, Obi in a statement issued on X, formerly Twitter on Wednesday kicked against the imposition, disclosing that it will “not only impoverish the citizens but make the country’s economic environment less competitive”.
His words: “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.
“This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system.
“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.
“It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.”
The former Anambra State Governor stressed that at a time when the government should be reducing taxes to curb inflation, it 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?”, he added.
