TODAY’S VIEWPOINT IS ON THE CYBERSECURITY LEVY. IT IS WRITTEN BY HONOURABLE FEMI ADEBISI JP, A MEDIA CONSULTANT
In Nigeria, the recent introduction of the cybersecurity levy on banking transactions sparked opposition from various quarters.
The directive issued by the central bank of Nigeria (CBN) raised concerns about its impact on already burdened masses, particularly in the face of existing economic challenges and the removal of both fuel and energy subsidies.
The cybersecurity levy, as mandated by provisions of the 2024 cybercrime (prohibition, prevention, etc.) Amendment act, claims to enhance cybersecurity measures in Nigeria by funding the national cybersecurity fund (NCF) under the administration of the office of the national security adviser (ONSA).
The levy, imposed on electronic transactions, risks overburdening members of the public, who are already grappling with economic hardships.
The move met with strong opposition from civil society organizations, concerned individuals, and even political figures, indicating a lack of popular support and the potential for adverse socio-economic impacts.
Former minister of finance, Ngozi Okonjo-Iweala, has urged the federal government to streamline taxes, indicating a need for a more balanced approach to taxation.
president Bola Tinubu’ s directive that the implementation of the cybersecurity levy should be suspended, also suggested that there may be political opposition to the levy as well.
Organizations like the socio-economic rights and accountability project (SERAP) and BudgIT, along with other concerned Nigerians, have taken legal action against the central bank of Nigeria (CBN) over the levy.
In a country where majority of the population struggles with financial challenges, the imposition of additional taxes, especially in the form of a cybersecurity levy on essential banking transactions, could exacerbate the burden on ordinary Nigerians.
The focus should be on alleviating the economic challenges faced by the masses, rather than introducing measures that could further strain their financial well-being.
However, by the recent presidential directive suspending the implementation of the cybersecurity levy, the government has demonstrated responsiveness to the concerns of its citizens and prioritize their economic welfare.
Therefore, a more thorough review and consultation process should be undertaken to ensure that cybersecurity initiatives are implemented in a manner that is fair, transparent, and consider the current socio-economic realities.
