The Nigeria Labour Congress (NLC) has opposed the Central Bank of Nigeria (CBN)’s directive requiring all financial institutions to levy a 0.5% cybersecurity tax on electronic transactions. In a statement issued on Tuesday, NLC President Joe Ajaero criticized the directive, denouncing it as “an additional burden on hardworking Nigerians.”
Ajaero demanded a reversal of the policy and advocated for introducing a new cybersecurity measure that does not impose further financial strain on the Nigerian populace. He emphasized the importance of cybersecurity in today’s digital age but argued that imposing such a levy without considering its implications on workers and vulnerable segments of society is unjustifiable.
The NLC perceives the levy as an additional tax that exacerbates the financial responsibilities already borne by Nigerians, portraying it as another means for the ruling elite to exploit workers and the masses. Ajaero called upon the Federal Government to reconsider the directive and prioritize policies aimed at alleviating the people’s financial burdens.
He urged a collaborative effort between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not burden the populace.
Backstory
On Monday, May 6, the CBN issued a circular instructing banks to implement the deduction process for the cybersecurity levy, to be administered by the National Security Adviser (NSA) office. The levy, stipulated by the 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act, mandates a 0.5% deduction of the value of all electronic transactions to the National Cyber Security Fund, overseen by the NSA.
Non-compliance with the directive carries penalties as prescribed in the amended Cybercrime (Prohibition, Prevention, etc.) Act, including fines of no less than 2% of the turnover of defaulting businesses.
The new policy will take effect in two weeks, according to a circular jointly signed by Chibuzor Efobi, CBN’s Director of Payment System Management, and Haruna Mustafa, Director of Financial Policy and Regulation.
While the levy applies to all electronic transactions at the point of transfer origination, the CBN provided a list of 16 exempted transactions in an appendix to the circular.
