By Milcah Tanimu
Economic experts and Nigerians are expressing strong criticism against the recent introduction of a 0.5 percent cybersecurity levy by the Central Bank of Nigeria (CBN), stating that it will exacerbate the already heavy tax burden on citizens and pose risks to businesses.
According to these experts, the timing of the policy is particularly concerning as it contradicts the government’s assurances of not introducing new taxes or raising tax rates to increase revenue. They argue that the implementation of this levy could lead to significant losses for businesses, deplete profits, erode capital, and potentially trigger business collapse.
Professor Uchenna Uwaleke, Director of the Institute of Capital Market Studies at Nasarawa State University, described the policy as ill-timed and urged for its review and suspension to promote financial inclusion.
Similarly, Gbolade Idakolo, Managing Director of SD&D Capital Management Limited, criticized the levy, stating that it will further burden businesses already struggling with inflation and high operating costs.
Financial analyst Aliyu Ilias stressed the need for managing Nigeria’s cyberspace but deemed the 0.5 percent charge excessive, suggesting a lower rate to lessen the impact on individuals.
Meanwhile, some citizens are advocating for the levy to be targeted at the wealthy rather than imposing it on the general populace, citing concerns about its effects on low-income individuals.
In response to the outcry, a civil society organization, SERAP, called on President Bola Tinubu to intervene and withdraw the levy, arguing that it violates constitutional provisions and human rights obligations.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) also expressed concerns, describing the levy as another stealth tax on the private sector. NACCIMA called for a thorough review of the policy, emphasizing the need for transparency in fund allocation and involvement of the private sector in oversight.
As discussions continue, stakeholders are urging for a comprehensive reconsideration of the cybersecurity levy to ensure it aligns with broader fiscal policy objectives and supports economic growth while effectively addressing cybersecurity threats.
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