BREAKING: NLC Demands Immediate Reversal Of CBN’s 0.5% Cybersecurity Levy

NLC has demanded the immediate reversal of the CBN’s 0.5% cybersecurity levy.

 

NewsOnline Nigeria reports that the Nigeria Labour Congress (NLC) has vehemently opposed the Central Bank of Nigeria (CBN)’s directive for all financial institutions to impose a 0.5% cybersecurity tax on every electronic transaction. 

 

In a statement on Tuesday, NLC President, Joe Ajaero, criticized the directive, calling it “an additional burden on hardworking Nigerians.” 

 

Ajaero also demanded that the policy be reversed and a new cybersecurity measure that does not impose another financial burden on the Nigerian people be introduced.  

“The Nigeria Labour Congress recognises the importance of cybersecurity in today’s digital age.  

“However, imposing such a levy on electronic transactions without due consideration for its implications on workers and vulnerable segments of society is unjustifiable. 

“This levy stands as another tax that is too much for Nigerians, burdening them with additional financial responsibilities. 

“We see this levy as another gang-up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses. 

“The Nigeria Labour Congress calls on the Federal Government to reconsider these directives and prioritize policies that alleviate the financial burdens of Nigerians. We urge a collaborative approach between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not unduly burden the populace.” Ajaero said. 

 

NewsOnline Nigeria recalls that on Monday, May 6, the CBN issued a circular ordering banks to enact the process of deduction of cyber security levy to be administered by the office of the National Security Adviser (NSA).

 

The deduction and collection of the cyber security levy is sequel to the enactment of the 2024 Cybercrime (prohibition, prevention etc) Amendment Act of 2024 which provides for a 0.5% deduction of the value of all electronic transactions to the National Cyber Security Fund, which would be administered by the office of the NSA. 

 

The circular noted that the deduction would be described as Cybersecurity Levy and the relevant financial institutions should begin deduction in two weeks following the secular.   

 

Penalty for non-compliance from banks

Moreover, the apex bank said that the penalty for defaulting is as prescribed in the amended Cyber Crime Prohibition and Prevention Act which is liable to a fine amounting to no less that 2% of the turnover of the defaulting business and others. 

“Penalties for Non-compliance Section 44 (8) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than 2% of the annual turnover of the defaulting business, amongst others,” the statement also added.  

The new policy Is expected to 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. 

Exemptions from the policy

While the levy is to be charged on all electronic transactions and applied at the point of transfer origination, the CBN in an appendix to the circular, listed 16 transactions exempted from the levy.