Naija Wahala
The proposed implementation of a 0.5 percent cybersecurity levy on electronic transactions has prompted the Trade Union Congress of Nigeria (TUC) to threaten a national economic shutdown.
The Nigerian Central Bank (CBN) recently ordered banks to start charging 0.5 percent of electronic transactions for cybersecurity as of May 20.
The directive, according to the top bank, came about as a result of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024.
It stated that the Office of the National Security Adviser (ONSA) would oversee the administration of the proceeds, which would be transferred to the National Cybersecurity Fund.
Festus Osifo, the president of the TUC, urged the Federal Government to order the CBN to revoke its directive to financial institutions regarding the matter in order to prevent the shutdown in a statement released on Wednesday.
At a time when Nigerians were struggling with the high cost of living, he called the plan illogical. The TUC president pointed out that among other things, the depreciation of the Naira, hyperinflation in gas prices, and supersonic increases in electricity rates were responsible for the high cost of living.
“We are quite disturbed that this administration’s policies have caused pain, anguish, and sorrow to Nigerians since its inception,” he stated.
Although stamp duty, transfer fees, VAT on transfer fees, and other account maintenance levies are currently assessed to bank account holders in Nigeria by both the government and the banks, this burden does not appear to be sufficient as the government is about to further inflict pain on the already suffering Nigerians.
“Therefore, a lot of this government’s policies are hurting not just the oppressed Nigerians but also businesses, as some of them are closing due to the unfavorable business climate.” He voiced concerns that the move would worsen the misery index, promote cash hoarding at home, decrease financial inclusion, and increase poverty.
