Unions kick ass, demand repeal of cybersecurity tax – Nigeria – The Guardian Nigeria News – Nigeria and World News

• Policies will push more Nigerians into poverty, warns Peter Obi
• The representatives withdraw the motion that sought to suspend the CBN leadership

The coming days will test the Federal Government’s resolve to contain growing agitations over the 0.5 per cent tax on all electronic transactions designed to contain growing cybercrime threats in the financial system.

In a circular dated May 6, 2024, the CBN had ordered all financial institutions to begin implementing its controversial cybersecurity tax.
But the Nigerian Trade Union Congress (TUC) has threatened to shut down the economy if the Federal Government does not give the CBN a marching order to scrap the policy.

Furthermore, the Nigerian Labor Congress (NLC) demanded an immediate halt to the implementation.
TUC President Festus Osifo said if the federal government fails to deliver, Congress would have no option but to mobilize members, stakeholders and the entire masses for an immediate protest that would shut down the economy.

Osifo also described the policy as “one more exploitation.”
He said what is currently in the interest of all Nigerians is an urgent conclusion of the minimum wage talks; It is not an irritating policy that would further reduce the already depleted disposable income of the masses, and indirectly ridicule the gains that the minimum wage would have brought.

He lamented that the cost of living is at its highest point amid strong food inflation that is contributing to the misery of citizens. He described the policy as a deliberate plot to deprive Nigerians of their hard-earned money, adding: “We oppose this vehemently.”

NLC Chairman Joe Ajaero said the tax is a scheme to exploit helpless masses and exacerbate the financial stress faced by the people.
He said that while Congress recognizes the importance of cybersecurity in today’s digital world, imposing the tax without considering its implications for workers and the vulnerable is unfair.

Ajaero said: “Our people are already castrated. This will further exacerbate the enormous suffering that Nigerians face on a daily basis. The government must allow Nigerians some respite. We continue to tread the limit and it is not certain what indifferent policy will tip the balance and throw us into a socio-economic spiral. These deductions directly affect the disposable income of workers and further decrease the purchasing power of the common citizen.

“Domestic manufacturers and other businesses are already closing as a result of the stifling socioeconomic environment, but instead of creating a business-friendly environment to encourage greater investment in the economy, the opposite appears to be being practiced.”

The NLC president added: “Businesses will pass these costs on to consumers, leading to higher inflation in an economy already gripped by hyperinflation. How could domestic manufactured goods and services remain competitive amid all these costs, and how would companies expand their capacity and employ more Nigerians when they cannot sell their products due to high prices?

Labor Party presidential candidate in the 2023 general election, Peter Obi, described the tax as a tax too many. He noted that the tax is ill-conceived and designed to milk a moribund economy.
The former governor of Anambra State revealed this yesterday in a series of tweets on his X account.

Obi said: “The introduction of yet another tax, in the form of the cybersecurity tax, on Nigerians who are already suffering severe economic hardship is further proof that the government is more interested in taking advantage of a moribund economy, rather than propelling it towards recovery and growth.

“Not only does this amount to multiple taxation on banking transactions, which are already subject to several other taxes, including stamp duties, but it negates the government’s stated commitment to reduce the number of taxes and rationalize the tax system.

“The imposition of a cybersecurity tax on banking transactions is particularly sad, given that the tax is levied on companies’ business capital and not their profits. Therefore, it will further erode what is left of the remaining capital, after the impact of the devaluation of the naira and the high rate of inflation. It is inconceivable to expect the long-suffering citizens of Nigeria to separately fund all government activities.

“Policies like this not only impoverish citizens but also make the country’s economic environment less competitive. At a time when the government should reduce taxes to curb inflation, the government is introducing new taxes. And when did the Office of the National Security Advisor (ONSA) become a revenue collection center? And why should that purely national security office receive returns from a specific tax as established by the new cybersecurity law?”

However, yesterday the House of Representatives rejected a motion calling for the suspension of the cybersecurity tax.
A representative, Manu Soro, who moved a motion on the floor, explained that the tax came at the wrong time, considering the difficulties Nigerians are currently facing.

The legislator had argued that the ONSA is a political office and does not have a mandate to manage the accumulations.
However, House Speaker Tajudeen Abbas urged the lawmaker to withdraw the motion to allow House leaders to deliberate on how best to address the situation.

The Coalition of Northern Groups (CNG) yesterday rejected the policy.
Reacting through a statement issued in Abuja by the National Coordinator, Jamilu Aliyu Charanchi, the coalition described the policy as totally unacceptable, extortionist and insensitive.

It said: “This tax, which is expected to come into effect within the next two weeks, exemplifies the federal government’s lack of compassion and empathy for the plight of Nigerians in the face of the current economic hardships.

“It is cruelty, a sequel to the removal of subsidies that has now driven fuel to over N1,000 per litre. Furthermore, the increase in the electricity rate amounts to daytime extortion by a government that came to power through democratic processes. We believe this additional charge is completely unjustifiable as Nigerians are already being fleeced through the collection of stamp duty, transfer fees, VAT and SMS charges in the banking sector.

“While we agree that protecting our cyberspace is paramount, it can only be justified as a corollary to stabilizing the economy and improving living standards. Even so, the current 0.5% percent is quite exorbitant in a country that has not fully implemented the 30,000 naira minimum wage but has reportedly increased the disposable income of members of the National Assembly.

“The CNG recalls that in recent years hundreds of billions of naira have been collected and looted through stamp duty alone, without the apex bank giving transparent and responsible explanations to Nigerians.”

The group added: “This statement by the CBN, which is capable of becoming another cesspool of corruption, is totally and resoundingly rejected, condemned and censured by all those who hold the country and its people in their hearts.”

In yet another case of opposition to the policy, the Association of Legislative Advocacy and Drafting Professionals (ALDRAP) threatened to take legal action against the CBN over the proposed tax.

The association sought clarification on whether the proposed circular seeking to implement Section 44(8) of the Prohibition of Cybercrimes (Amendment) Act, 2024 is not in conflict with Section 14 of the 1999 Nigerian Constitution.

In a letter to President Bola Tinubu, Senate President Godswill Akpabio, Inspector General of Police (IGP) Kayode Egbetokun and others, ALDRAP said Section 14(2)(b) of the Constitution declares that security and the welfare of the people will be the primary purpose of the government. In the letter signed by the Secretary, Dr. Tonye Clinton Jaja, the association stated that Section 1(3) of the 1999 Nigerian Constitution states that any provision of any other law that conflicts with the Constitution shall be deemed void and without effect.

This came as the National Association of Nigerian Students (NANS) said the tax will aggravate the woes of citizens, describing it as untimely, unpopular and insensitive.

He demanded the withdrawal of the policy, saying the apex bank will face the wrath of Nigerian students if it fails to comply.

NANS Chairman, Lucky Emonefe, in an interview with The Guardian, said the new tax would worsen an already bad situation because Nigerians are grappling with several challenges.

He vowed to lead a protest if the directive is not reversed.

He said: “It is anti-popular. People are going through a lot in this difficult economy. The minimum wage has not been fully implemented by different governors. Now they are proposing another tax.

“It is unacceptable that it is anti-popular. And NANS as an organization rejects it in its entirety. If they refuse to remove it, we’ll go out on the street. We don’t waste time on this. And I will personally lead from the front.

“People should feel for the masses. The masses are suffering. The president of Nigeria is trying to change things. But some people will simply bring things that frustrate the government’s efforts to modernize the economy. Those who introduced it should reverse it or face the wrath of Nigerian students.”