The Centre for the Promotion of Private Enterprise (CPPE) has estimated that the Nigerian federal government could generate between ₦3 trillion and ₦7.75 trillion over the course of one year from its newly implemented 0.5% cybersecurity levy on electronic banking transactions.
The Director of CPPE, Dr. Muda Yusuf, disclosed this in a statement on Tuesday, advocating for the suspension of the levy due to the hardship experienced by Nigerians.
Naijaonpoint recall that the Central Bank of Nigeria had instructed all banks to collect and remit a 0.5% cybersecurity levy on electronic transactions to the office of the National Security Adviser, NSA.
According to the Director of CPPE, electronic payments on the Nigeria Interbank Settlement System (NIBSS) platform in 2023 amounted to ₦600 trillion.
Applying the 0.5% cybersecurity levy would result in ₦3 trillion.
Yusuf 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 ₦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 ₦3.2 trillion, and infrastructure appropriation was ₦1.32 trillion. These are just appropriations. Actual releases are often much less.”
Yusuf, the former Director General of Lagos Chambers of Commerce and Industry, highlighted the levy’s potential to jeopardize the cashless policy.
He warned that the legislation could lead to increased reliance on cash transactions among Nigerians, urging the government to halt its implementation and engage in broader consultations.
“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.