The federal government will rake in between ₦3 trillion and ₦7.75 trillion in one year with its newly introduced cybersecurity levy of 0.5 per cent on electronic banking transactions introduced by the FG through the CBN and NSA.
This was revealed by the Centre for the Promotion of Private Enterprise (CPPE), through Dr Muda Yusuf, its Chair, in a statement calling for its suspension due to the hardship being faced by Nigerians.
He clarified that imposing the 0.5 per cybersecurity levy would total ₦3 trillion based on the Nigeria Interbank Settlement System’s (NIBSS) data on electronic payments on its network in 2023, which stood at ₦600 trillion.
“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 ₦600 trillion. 0.5 per cent of this is ₦3 trillion.
“The industry data of electronic payments in 2022, according to the CBN website, was ₦1550 trillion. 0.5 per cent of this gives ₦7.75 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 infrastructure appropriation was ₦1.32 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 said.