We’ll shut down the economy if FG doesn’t withdraw Cybersecurity levy, TUC vows

BLESSING AKOROWOSI, with agency reports

 

The Trade Union Congress of Nigeria (TUC) has threatened a shutdown of the economy over the plan to begin implementation of the 0.5 per cent cyber security levy on electronic transactions.

The body urged the Federal Government to direct the Central Bank of Nigeria (CBN) 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.

CBN had recently, directed banks to implement the 0.5 per cent cybersecurity levy on electronic transactions from May 20.

The apex bank said the directive followed the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.

It said that the proceeds were to be remitted to the National Cybersecurity Fund which would be administered by the Office of the National Security Adviser.

Osifo described such plan as illogical, coming at a time that Nigerians were grappling with high cost of living.

He said that such high cost of living was imposed by devaluation of Naira, hyper hike in the cost of petrol, supersonic increment in the cost of electricity tariff, among others.

“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 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.

Levy is milking a dying economy, Obi cries out again

.Says it will further impoverish Nigerians

The Labour Party Presidential Candidate in the 2023 general election, Peter Obi has described the newly introduced Cyber security LEVY by the Federal Government as taxes too many and aimed at milking a dying economy.

Obi said that instead of nurturing the recovery and growth of the economy, the government by its multiple taxation, is more interested in heaping more burdens on the people who are already suffering severe economic stress.

Writing on his X handle on Wednesday morning, Obi said: “The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth.

“This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system.

“The imposition of a Cybersecurity Levy on bank transactions is particularly sad given that the tax is on the trading capital of businesses and not on their profit hence will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation high inflation rate. It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government.

“Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.

“At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue-collecting center?

“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”

.Ex-MAN chairman urges CBN not to implement policy

Dr Wale Adegbite, a former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, has urged the Central Bank of Nigeria (CBN) not to implement the recently announced cyber security levy.

Adegbite made the appeal in an interview with the News Agency of Nigeria (NAN) on Wednesday in Ota, Ogun State.

He said that the private sector was already facing challenges arising from high cost of petroleum products, increased food price, high energy tariff and low salary.

”There is an urgent need for CBN to halt this policy so that it will not add to the challenges being faced by the private sector and Nigerians at large.

”We are aware that the Federal Government has directed CBN to deduct 0.5 per cent levy for cyber security.

”The question most Nigerians are asking is whether cyber security is our priority at the moment.

”We are at a time when the masses are struggling with inflation and its resultant effect on cost of living, this is not an suspicious time for such policy,” he said.

NAN reports that the CBN in a circular on Monday directed commercial banks and other financial institutions to start charging 0.5 per cent cyber security levy on bank transactions after two weeks

 

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