Controversy Surrounds Central Bank of Nigeria’s Cybersecurity Levy Implementation

Controversy continues to swirl around the recent announcement by the Central Bank of Nigeria (CBN) regarding the introduction of a 0.5 per cent cybersecurity levy on certain transactions. The levy, set to commence on May 20, 2024, has sparked debate among lawmakers and citizens.

A member of the House of Assembly, representing the Obio/Akpor Constituency, Kingsley Chinda, raised concerns over the implementation of the levy. Chinda argued that the wording of the CBN’s circular has caused confusion and could potentially burden bank customers unfairly.

The Cybercrimes Act has also been cited in the ongoing discussions, with many pointing out discrepancies between the Act’s provisions and the CBN’s directive. Civil society organizations and individuals have expressed apprehension over the levy, calling for a reversal of the decision.

Dr. Muda Yusuf, the Chief Executive of the Center for the Promotion of Private Enterprise (CIPPE), criticized the levy, stating that it comes at a challenging time for businesses and citizens. Yusuf highlighted the existing financial strains on both sectors, emphasizing the need for a more conducive economic environment.

Businesses in Nigeria already face a multitude of taxes and levies, including Company Tax, VAT, Stamp Duties, and others. The introduction of the cybersecurity levy adds to this financial burden, raising concerns about the overall tax and fee structure in the country.

According to the Nigeria Interbank Settlement System (NIBSS), electronic payments in 2023 totaled N600 trillion. With the 0.5 per cent levy, the potential revenue amounts to N3 trillion, further intensifying discussions about the impact on businesses and the economy.