The Centre for the Promotion of Private Enterprise (CPPE), says the recently introduced cybersecurity levy of 0.5 percent on electronic banking transactions will bring between N3 trillion and N7.75 trillion to the federal government every year.
This was disclosed by the Director of CPPE, Dr. Muda Yusuf, in a statement on Tuesday.
Yusuf called for the suspension of the levy, saying it would cause more hardship for Nigerians.
He explained that going by the Nigeria Interbank Settlement System data, NIBSS, electronic payments on its platform in 2023, which stood at N600 trillion, applying the 0.5 per cybersecurity levy would amount to N3 trillion.
READ: New CBNs 0.5% (0.005) Cybersecurity Levy, What It Entails
He added that industry data on electronic payments in 2022, which stood at N1550 trillion, implies that the government would generate N7.75 trillion from the cybersecurity levy.
Yusuf said the levy poses a serious risk to the cashless policy, adding that more Nigerians would migrate to cash transactions with the legislation.
He called on the government to suspend the implementation and seek broader engagements.
He said, This is not a good time to impose an additional levy on businesses and citizens.
There is also the issue of proportionality. That relates to the project objective and the amount of revenue being mobilised.
By the account of the Nigeria Interbank Settlement System, NIBSS, electronic payments on its platform in 2023 was N600 trillion. 0.5 per cent of this is N3 trillion.
The industry data of electronic payments in 2022, according to the CBN website, was N1550 trillion. 0.5 per cent of this gives N7.75 trillion. Even if we discount these numbers for the exemptions provided in the law, what will be left would still be staggering.”
It is difficult to rationalise spending this much on fighting cybercrime.
Meanwhile, the total budget appropriation for defence and security in the 2024 budget was N3.2 trillion, and the infrastructure appropriation was N1.32 trillion. These are just appropriations. Actual releases are often much less.
There is also the risk the legislation poses to the cashless policy of the central bank, over which significant progress has been made.
We are likely to see an increased migration to the use of cash as against electronic platforms.
We plead with the relevant authorities to put the implementation of the legislation on hold while a thorough review is done, he added.
Kazeem Badmus is a graduate of Mass Communication with years of experience. A professional in journalism and media writing, Kazeem prioritses accuracy and factual reportage of issues. He is also a dexterous finder of the truth with conscious delivery of unbiased and development oriented stories.
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