The introduction of a cybersecurity levy on electronic banking transactions by the Nigerian federal government has sparked controversy, with projections indicating substantial revenue gains but raising concerns over its impact on citizens.
According to the Centre for the Promotion of Private Enterprise (CPPE), the levy could generate between N3 trillion and N7.75 trillion annually, based on electronic payment data from the Nigeria Interbank Settlement System (NIBSS). However, CPPE Director Dr. Muda Yusuf has called for the levy’s suspension due to its potential hardship on Nigerians.
Yusuf highlighted the risk of increased cash transactions and its adverse effect on the cashless policy. He urged the government to reconsider the implementation and engage in broader consultations to address concerns.
The levy, mandated by the Central Bank of Nigeria, requires banks to collect and remit 0.5 per cent of electronic transactions to the National Security Adviser’s office, aiming to bolster cybersecurity measures. However, its financial implications and potential consequences on the economy have sparked debate, prompting calls for a review of its implementation.
