Jacinta Chisom Oguadinma and Favour WinnerChisom Oguadimma, Favour Winner
Nigerians have expressed dissatisfaction with the new cybersecurity levy imposed by the Central Bank of Nigeria on bank customers for electronic transactions.
According to a circular dated 6 May 2024 issued to all commercial banks, other financial institutions and mobile money operators, the apex bank said a levy of 0.5 per cent value off all electronic transactions shall be charged customers making transfers and remitted to the National Cybersecurity Fund (NCF) which shall be administered by the Office of the National Security Adviser (ONSA).
The CBN said the levy complies with the Cybercrimes (Prohibition, Prevention, etc.) Act 2015. It directed all commercial, merchant, non-interest, payment service banks and other financial institutions to begin implementing the directive in the next two weeks from the circular date.
This comes after the recent implementation of stamp duty charges on mortgage-backed loans and bonds by the Federal Government.
Many Nigerians condemned the new levy stating that it is a form of extortion, and adds to the burden already created by the high costs of things in the country as well as other multiple levies paid for electronic transactions.
Veronica Agbo, a businesswoman, sees the new system as a way of punishing the poor masses. “They are not doing the right thing for the poor masses, the little we manage to hustle for, they still want to collect a portion of it. The government should allow the masses to breathe.”
Ogbodo Miracle, a university student said: “The government should better do something about this because I am not ready for this whole stress, I have had enough.”
In an interview with Prime Business Africa, Ifeanyi Obi, a customer care representative at an Access bank branch in Nnewi, explained that the system is changing and the earlier people embrace the changes the better. “It is not in us to change the policy but we pray the government do something about it.“
Philip Ozor, a student said: “It’s not the fault of this government in power that they turn public enterprise into a money-making machine but it’s our nonchalant attitude that brought us into this mess.”
It’ll Worsen Economic Burdens of Nigerians – NLC
Meanwhile, the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) have condemned the cybersecurity levy introduced by the Federal Government saying it will worsen the economic hardship Nigerians face.
In a statement signed by the NLC president Joe Ajero released on Tuesday, the union said it recognizes the importance of Cybersecurity in this present age but believes that imposing such levy on electronic transactions without due consultation with Nigerians is “unjustifiable.”
According to Ajero, the levy is a burden on Nigerians and a means through which the “ruling elites” would exploit citizens. He pointed out that the levy will also affect businesses.
“This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities.
“We see in this levy another gang up by the ruling elite to continue its extortion and exploitation of hapless and helpless work and the masses so that their cronies in various financial centres can continue wallowing in unbridled consumption.”
The union argued that while the CBN has exempted some transactions like interbank transfers and loan transactions from this levy, “the broader impact on everyday transactions cannot be overlooked. Such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen.”
It further stated that local manufacturers and other businesses are already closing down due to the economic hardship yet nothing is being done by the government to create a business-friendly environment that encourages investments in the economy.
“Monies raised in the past have not helped in making lives better for the citizenry neither have they been seen in better infrastructural provisions. Extracting this levy from the people who are already kwashiorkored by government policies in order to throw money at Cybersecurity will not make our Cyberspace better just like it has been our experience in the past. We see this as a Cybersecurity levy that will inflict severe social security on workers and masses,” NLC stated.
The union called on the Federal Government to do something about the directive and create policies that will lessen the financial burdens of Nigerians. “We urge a collaborative approach between the government, regulatory bodies and stakeholders to develop sustainable Cybersecurity measures that do not unduly burden the populace. Our people are already emasculated.”
Jacinta Chisom Oguadinma
