The Nigeria Labour Congress (NLC) has 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.
Backstory
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.
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.
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.
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
Here are the lists of transactions exempted from the levy.
