The NESG predicted if this policy persists, many Nigerians may opt out of electronic fund transfers, which could lead to revenue loss for the government.
The Nigerian Economic Summit Group (NESG) has criticized the timing of the Central Bank of Nigeria’s (CBN) recent introduction of a 0.5% cybersecurity levy on electronic transactions.
NESG, in a statement issued on Thursday, May 9, empathetically urged the Federal Government to reconsider this levy.
Understanding the challenges the government faces, NESG expressed concerns about the burden it places on Nigerians who are already facing multiple taxes and inflationary pressures.
The CBN’s directive, issued in a circular dated May 6, 2024,instructs all deposit money banks, mobile money operators, and payment service providers to deduct the levy and remit it to the National Cybersecurity Fund (NCF), which is overseen by the Office of the National Security Adviser (ONSA).
The recent development has incited significant outrage, particularly from labour unions, who are now threatening action.
The NESG expressed strong disapproval, stating that the timing of the cybersecurity levy is inappropriate given the current high cost of living, worsened by escalating inflation.
They argue that the levy should instead target wealthy individuals and be transferred electronically in a specific amount to alleviate concerns among the public, who are grappling with soaring prices of both essential and non-essential items.
The NESG predicted if this policy persists, many Nigerians may opt out of electronic fund transfers, which could lead to revenue loss for the government.
“The NESG, however, feels this is a critical time to implement such a policy. The impacts of the fuel subsidy removal, exchange rate reform, and, most recently, the removal of electricity subsidies still permeate the operating costs of businesses and citizens’ welfare.
“The government must be cautious of the numerous strenuous policies that stiffen the purchasing power and welfare of corporations and individuals. Therefore, the government needs to properly sequence reforms for efficient socioeconomic outcomes, especially those that strain the people,” NESG said.
