By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has joined other parties to ask the federal government to rescind the decision to impose a cybersecurity levy on citizens’ bank transactions, saying that the funds from the charge might not be used to enhance the country’s cybersecurity architecture to guarantee cyber-safety for technology users in Nigeria.
This was disclosed by the Director General of LCCI, Mrs Chinyere Almona, in a press release, noting that the justification for the levy was unclear, demanding its withdrawal to allow more consultations with critical stakeholders.
“The directive that the remittance of this levy should go to the Office of National Security Adviser suggests that the funds may not be used to enhance our cybersecurity architecture to guarantee cyber-safety for technology users in Nigeria.
“We believe that since the collection of this levy cannot guarantee the protection of payers from cyberattacks, it is difficult to justify its collection at this time.
“In the same vein, the collection approach with some exemptions can create confusion regarding what transactions qualify for the exemptions.
“Implementing this directive can gradually encourage some people to return to holding cash to avoid paying the levy. This can negatively impact the achievement already recorded with the cashless policy,” Mrs Almona said.
LCCI chief urged the government to work towards amending the enabling law to reflect current realities, initiate programmes that reflate the economy, and invest more in digital infrastructure to support business operations.
She stated that the directive by the CBN to banks to implement Section 44 of the Cybercrime Act 2024, which imposes a 0.5 per cent cybersecurity levy on Nigerians, remains a subject of concern to the LCCI.
“By this directive, individuals and businesses will be burdened with an additional levy amidst unsettled performance crises with power supply after the recently reviewed electricity tariffs.
“We urge the government to reconsider the implementation of this directive as its timing is wrong, and the justification is unclear. This directive should be withdrawn while we call for more consultations with critical stakeholders.
“We also urge the government to harmonise its tax initiatives with the work done by the Presidential Committee on Tax and Fiscal Reforms to prevent multiple taxations and poor coordination of the expected new tax regime,” she said.
LCCI said at a time when government revenues were at record levels from higher crude prices, and higher revenues accruing to the federation account, including saved resources from the stoppage of subsidies, Nigerians ought to be seeing projects created to enhance their living standard as a dividend of democracy for the sacrifices made by Nigerians.
It warned that in the face of biting inflation that had continued to weaken the purchasing power of consumers and with companies burdened with a rising cost of production, any imposition of additional cost burden will slow down economic activities.
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