Outrage over cyber security levy in Nigeria

Emmanuel Ukudolo I Monday, May 13, 2024

 

Nigerians are not happy with the recent introduction of Cyber Security Levy by the Central Bank of Nigeria, CBN.  The cyber security levy is rooted in the 2024 Cyber Crimes Amendment Act which imposes 0.005 percent on all electronic transfers with all the proceeds payable into the National Cyber Security Fund domiciled in the office of the National Security Adviser, NSA.

Through the Act, banks are mandated to deduct the levy from customers and reflect the same in their bank account statements. This is just one of the many levies imposed on Nigerians by the Central Bank of Nigeria.

Already, the Nigerian Labour Congress, NLC, Trade Union Congress, TUC have condemned the act, giving the president an ultimatum to reverse the levy.  The Socio-Economic Rights and Accountability Project, SERAP and other concerned Nigerians  are already in court to challenge the levy.

The Presidential candidate of Labour Party in the 2023 Presidential election, Mr. Peter Obi has equally flayed the levy. According to him, “the levy is proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.

The reputable international audit firm, KPMG and many other Nigerians believe that the timing of the levy is nothing but punitive considering the harsh economic weather Nigerians are going through occasioned by an over depreciated Naira and very high prices of petroleum products which has sent the  prices of goods and services far beyond the reach of most Nigerians, some of whom not scavenge for food in the trash bin.

However, President Bola Tinubu has issued a directive to the Central Bank of Nigeria to suspend the levy. So far, CBN Governor, Yemi Cardoso is yet to counter his earlier directive to the banks on the levy. Whether or not CBN will honour the directive is yet to be seen.