The 2023 presidential candidate of the Labour Party, Peter Obi, has queried the rationale behind the newly introduced Cyber Security Levy by the President Bola Ahmed Tinubu-led Federal Government.
Describing it as one tax too many, noted that the tax is ill conceived and designed to milk a dying economy.
The Central Bank of Nigeria (CBN), on Monday, directed a 0.005 percent Cybersecurity Levy deductions on electronic transfers.
A circular issued by the CBN’s Director of Payment Services, Uzoma Efobi, stated that the deductions would become effective in two weeks.
According to the circular, the deduction and collection of the cyber security levy is sequel to the enactment of the 2024 cyber crime (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 National Security Adviser (NSA).”
The former Anambra State Governor in a series of posts via X, on Wednesday said instead of nurturing the economy back to health and growth, the current administration with its multiple taxation, is more interested in heaping additional burdens on Nigerians who are already under economic stress.
He posted, “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.
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“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 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.
“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 center?
“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”
