Voice of the Nation

Peter Obi

by

By Chinelo Obogo, Lagos

Former Labour Party presidential candidate Mr Peter Obi has criticised the enforcement of a 0.5% cybersecurity levy on banking transactions by the office of the National Security Advisor (NSA) and the Central Bank of Nigeria (CBN). He argues that the levy is an additional burden on struggling Nigerians and contradicts the government’s goal of reducing taxes.

In a series of posts on his verified Twitter handle on Wednesday, the former Anambra State governor stated that the levy is an extra tax on bank transactions, which will harm businesses already affected by inflation and devaluation.

Obi questioned the logic of citizens funding all government activities and emphasised the need for tax cuts to improve the economy. He also expressed concerns about the office of the NSA becoming a tax revenue collection centre.

“The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth,” Obi stated. “This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties, but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system.”

“The imposition of a Cybersecurity Levy on bank transactions is particularly sad given that the tax is on the trading capital of businesses and not on their profit, hence will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation and high inflation rate,” he continued. “It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.”

“At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes,” Obi added. “And when did the office of the NSA become a revenue-collecting centre? And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”

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