Nigerians react to new 0.5% cybersecurity tax

The introduction of the 0.5 percent cybersecurity tax on all banking transactions has sparked widespread discontent among Nigerians.

On Monday, the Central Bank of Nigeria (CBN) issued a circular to various financial institutions, including commercial, commercial, interest-free and payment services banks, stating that the tax would take effect two weeks from May 6.

“The tax will be applied at the point of origin of the electronic transfer, then it will be deducted and remitted by the financial institution. The deducted amount will be reflected in the client’s account with the mention ‘Cybersecurity tax’.”

“Deductions shall commence within two weeks from the date of this circular for all financial institutions and monthly remittance of bulk collected levies to the NCF account domiciled with the CBN by the fifth business day of each subsequent month,” the directive said. part.

Reactions

Nigerians across the country are expressing their discontent, noting that banking transactions are becoming more expensive due to numerous fees.

A user of microblogging platform X, Sarki, wrote: “In a country plagued by hardship, poverty and unemployment, the federal government has introduced new cybersecurity taxes.”

Lola Okunrin, another user, noted that “the tax on cybersecurity in a country where it seems that bank staff are giving our bank details to scammers. “Our cyberspace is not secure at all and they are charging us for it.”

Speaking, the Socio-Economic Rights and Accountability Project (SERAP) and the Nigerian Labor Congress called for the withdrawal of the directive.

In a statement issued by Kolawole Oluwadare, Deputy Director of SERAP, the organization called on the administration of President Bola Tinubu to withdraw the “arbitrary and illegal directive” issued by the CBN within 48 hours.

SERAP also urged the administration to stop Nuhu Ribadu and the Office of the National Security Advisor (NSA) from enforcing section 44 and other oppressive clauses of the Cybercrime Act 2024.

These measures flagrantly contravene the Nigerian Constitution, the African Charter on Human and People’s Rights and the International Covenant on Civil and Political Rights, to which Nigeria is a signatory, the organization stated.

“If the illegal directive of the CBN is not withdrawn and adequate steps are not taken to amend the repressive provisions of the Cyber ​​Crimes Act within 48 hours, SERAP will consider appropriate legal action to compel the Tinubu administration to comply. with our request in the public interest.

“Withdrawing the illegal CBN directive and repealing the repressive provisions of the Cyber ​​Crimes Act, 2024 will be fully consistent with President Tinubu’s constitutional oath which requires public servants to respect the provisions of the constitution and the rule of law and refrain from of any improper act. ”the statement reads in parts.

The NLC expressed concern over the imposition of a tax on electronic transactions, arguing that it places a burden on workers and vulnerable groups.

The union said it recognizes the importance of cyber security in today’s digital age, but imposing such a tax on electronic transactions, without due consideration of its implications for workers and vulnerable segments of society, is unjustifiable.

This tax represents another excessive tax on Nigerians, burdening them with additional financial responsibilities, according to a press release signed by its president, Joe Ajaero.

“We see in this tax another gang of the ruling elite to continue their extortion and exploitation of the hapless and helpless workers and masses so that their cronies in various financial centers can continue to revel in unbridled consumption. During our last May Day speech we called on the government to prioritize the well-being of the Nigerian workers and masses in its political directions and actions instead of the pursuit of profits that unleashes more pressure on the people.

“We wonder when it has become a crime for people to save their meager income in banks and whether the government intends to encourage people to once again resort to hoarding cash and using cash transactions instead of electronic transfers.” which seem to have become a ruin. for the people?

“While the CBN has exempted interbank transfers and loan transactions from this tax, the broader impact on everyday transactions cannot be overlooked. Such deductions directly affect the disposable income of workers and further decrease the purchasing power of the common citizen,” the statement said.