By Milcah Tanimu

Recently, a circular from the Central Bank of Nigeria (CBN) sparked widespread outrage by directing banks to impose a cybersecurity levy on electronic transactions. This directive, intended to take effect on May 20, 2024, was met with intense backlash, highlighting the government’s perceived tendency to burden citizens with onerous policies.

The Nigeria Labour Congress (NLC) swiftly condemned the levy. In a statement, NLC President Comrade Joe Ajaero criticized it as another anti-people policy amidst severe economic hardship. Tensions escalated as the National Assembly’s Senate and House of Representatives disagreed on the levy’s propriety. The Senate defended the levy, emphasizing its necessity for national security and economic protection, while the House of Representatives called for its suspension due to public outcry and ambiguous CBN directives.

The cybersecurity levy, embedded in the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015, faced implementation delays due to unclear interpretations. The law aimed to prevent exchange rate manipulation and safeguard the naira. However, the CBN’s vague circular led to widespread concern that the levy would burden ordinary Nigerians rather than just targeted businesses like GSM service providers, banks, and insurance companies.

Responding to the controversy, the Federal Government suspended the levy, pending a review. This decision came amid concerns that the levy would exacerbate the already high tax burden on Nigerian businesses, potentially stifling the business climate and elevating inflationary pressures. The Nigerian Economic Summit Group (NESG) pointed out that additional taxes, including the Tertiary Education Tax, the National Information Technology Development Agency Levy, and others, could push effective tax rates beyond the actual Corporate Income Tax rate, harming businesses and consumers alike.

Currently, bank customers endure numerous charges, and the cybersecurity levy could add to this burden. The levy’s implementation risks contradicting the National Assembly’s claim that the law protects the poor, as businesses would likely pass the cost onto consumers. This would aggravate the financial strain on Nigerians, already struggling with high inflation and economic instability.

Furthermore, the role of the National Security Adviser (NSA) as a revenue collector, as stipulated by the cybersecurity law, raises concerns. The NSA’s office has faced corruption allegations, making the levy’s collection and management contentious. Instead of merely suspending the levy, a comprehensive review and amendment of its extortionate provisions are necessary to alleviate the economic burden on businesses and ordinary Nigerians.

In conclusion, while the cybersecurity levy aims to strengthen national security and economic stability, its current form and implementation could exacerbate financial hardships for Nigerians. A thorough legislative review is crucial to ensure that measures meant to protect do not end up oppressing the very citizens they aim to safeguard.