The Trade Union Congress of Nigeria (TUC) has threatened to shut down the economy over the decision of the Central Bank of Nigeria to implement a 0.5 per cent cyber security levy on electronic transactions, urging President Bola Ahmed Tinubu-led federal government to direct the apex bank to withdraw its directive to financial institutions on the issue, to avert the shutdown.
The union’s President, Mr Festus Osifo, gave the warning in a statement on Wednesday.
Joe Ajaero-led Nigeria Labour Congress (NLC) has rejected the newly introduced 0.5 per cent cybersecurity levy for all bank transactions by the Central Bank of Nigeria.
The Informant247 reports that commercial banks and other financial institutions in Nigeria have been directed to implement a 0.5 per cent cybersecurity levy on electronic transfers.
The Central Bank of Nigeria (CBN), in a circular signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation, issued to the commercial, merchant, non-interest and payment service banks, as well as mobile money operators, said the policy would take effect in two weeks, and charges would be described as ‘Cybersecurity Levy’.
According to the apex bank, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention, etc) Amendment Act of 2024.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc.) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, “a levy of 0.5% (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” CBN said.
However, Osifo described such a plan as illogical, coming at a time when Nigerians were grappling with the high cost of living, adding that the devaluation of the Naira, hyper hike in the cost of petrol, supersonic increment in the price of electricity tariff, among others imposed such a high cost of living.
“We are quite disturbed that since the inception of this administration, its policies have brought pain, anguish and sorrow on Nigerians.
“Whereas, a bank account holder in Nigeria today is currently charged stamp duty, transfer fee, VAT on transfer fee, and all forms of account maintenance levies by both government and the banks, this burden seems not to be enough, as government is poised to inflict further pain on the already battered Nigerians.
“So, many policies of this government are not only imposing hardship on the downtrodden Nigerians but also on businesses, as some of them are shutting down because of the unfriendly business environment,“ he said.
The union leader expressed fears that the development would further encourage people to hoard cash at home, reduce financial inclusion, increase poverty and exacerbate the misery index.
According to him, all Nigerians are interested in right now is the urgent conclusion of discussions around the minimum wage.
“Not a vexatious policy that is further reducing the already depleted disposable income of the masses and indirectly ridiculing the gain which the minimum wage would have brought to the people when concluded,” he added.
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Cybersecurity levy: NLC, NANS reject CBN’s policy
Joe Ajaero-led Nigeria Labour Congress (NLC) has rejected the newly introduced 0.5 per cent cybersecurity levy for all bank transactions by the Central Bank of Nigeria.
The Informant247 reports that commercial banks and other financial institutions in Nigeria have been directed to implement a 0.5 per cent cybersecurity levy on electronic transfers.
The Central Bank of Nigeria (CBN), in a circular signed by Chibuzor Efobi, director of payments system management and Haruna Mustafa, director of financial policy and regulation, issued to the commercial, merchant, non-interest and payment service banks, as well as mobile money operators, said the policy would take effect in two weeks, and charges would be described as ‘Cybersecurity Levy’.
According to the apex bank, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention, etc) Amendment Act of 2024.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc.) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, “a levy of 0.5% (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” CBN said.
In its reaction to the development, the NLC, in a statement by its President, Joe Ajaero, asked the Tinubu-led government to immediately withdraw the levy, saying it is another anti-people government policy amid excruciating economic hardship.
The statement read, “The Nigeria Labour Congress vehemently condemns the recent directive by the Central Bank of Nigeria, CBN, to levy a 0.5 per cent ‘Cybersecurity Levy’ on electronic transfers.
“This levy, to be implemented by deduction at the transaction origination, is yet another burden on the shoulders of hardworking Nigerians.
“In the circular issued by the CBN, the directive mandates banks and payment service operators to affect these deductions, effective next two weeks. This move, ostensibly aimed at bolstering cybersecurity measures, threatens to exacerbate the financial strain already faced by the populace.”
Cybersecurity levy: Don’t add to students’ suffering – NANS tells Tinubu
In a related development, the National Association of Nigerian Students (NANS) also rejected the newly introduced 0.5 per cent cybersecurity levy for all bank transactions.
In a communiqué issued by NANS President Pedro Obi, the union expressed deep concerns over introducing another policy that “burdens the already-strained populace, especially amidst prevailing economic challenges.”
NANS firmly denounced the CBN’s new directive, labelling it as an undue strain on hardworking Nigerians.
“While purportedly aimed at enhancing cybersecurity frameworks, NANS emphasizes that this levy only adds to the financial pressures faced by individuals and businesses across the nation.
“We hereby call for alternative measures to finance this instead of further taxing Nigerians; in the face of numerous other charges already imposed on electronic transactions, the cashless policy may be defeated.
“NANS urges the government to reconsider this levy in light of its detrimental impact on suffering Nigerian students, businesses, and the general populace, and instead advocates for policies that alleviate, rather than exacerbate economic burdens,” the communiqué said.