The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has asked the Federal Government and the Central Bank of Nigeria (CBN) to cap the maximum amount for the newly introduced cybersecurity levy at N500 to ameliorate the burden on the private sector.
The group recommended this in a statement seen by Nairametrics, where it raised concerns on the impact of the new levy on different aspects of the economy.
According to the association, with over N600 trillion recorded in e-payment last year, 0.5% of the figure yearly is significant and with the incident rate significantly lower than the levy rate, the proposed levy should be reduced to N500.
The group also called for clear performance metrics to justify the introduction of the additional tax on members of the private sector The statement read,
NACCIMA asked the Federal Government to involve the private sector in the management of the fund for transparency’s sake and stated that the new levy contravenes the provisions of the constitution on the federation’s revenue.
Commenting on the effects of the levy on the private sector, the group said it conflicts with assurances of the Federal Government through the Presidential Committee on Fiscal Policy and Tax Reforms, which is on the verge of producing its final report that hopes to streamline the multiple taxes being borne by the private sector.
The statement also noted that the levy is inimical to Nigeria’s competitiveness in terms of ease of doing business and could catalyse capital flight and brain drain in the tech sector.
The CBN recently ordered banks and other payment service providers to deduct 0.5% of the total value of electronic transactions as cybersecurity levies to be remitted to the cybersecurity fund domiciled in the office of the National Security Adviser (ONSA).
