Nigeria Labour Congress Slams CBN’s 0.5% Cybersecurity Tax As “Unjust Burden”
By Sonia Enoma
Editor
The Nigeria Labour Congress (NLC) has strongly opposed the recent directive from the Central Bank of Nigeria (CBN) mandating financial institutions to impose a 0.5% cybersecurity tax on electronic transactions.
NLC President, Joe Ajaero, denounced the directive, labelling it as “an additional burden on hardworking Nigerians.” He demanded a reversal of the policy and urged for the implementation of cybersecurity measures that don’t impose further financial strain on the Nigerian populace.
Acknowledging the importance of cybersecurity in the digital era, Ajaero emphasized that imposing such a levy without considering its impact on workers and vulnerable groups is unjustifiable. He criticized the move as yet another financial imposition on Nigerians, exacerbating their economic challenges.
This criticism comes after the CBN announced to financial institutions to start the deduction of 0.5% of all transaction value known as the Cyber security Levy. However, there are exemptions for those affected as stated in the circular.
“The Nigeria Labour Congress recognises the importance of cybersecurity in today’s digital age. However, imposing such a levy on electronic transactions without due consideration for its implications on workers and vulnerable segments of society is unjustifiable. This levy stands as another tax that is too much for Nigerians, burdening them with additional financial responsibilities,” he said.
Ajaero highlighted the NLC’s concern over what they perceive as a continuation of exploitation by the ruling elite, urging the Federal Government to reassess the directives and prioritize policies that ease the financial strain on citizens, stating,
“We see this levy as another gang-up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses”
He advocated for a collaborative effort among the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that don’t disproportionately burden the populace.
“The Nigeria Labour Congress calls on the Federal Government to reconsider these directives and prioritize policies that alleviate the financial burdens of Nigerians. We urge a collaborative approach between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not unduly burden the populace.” Ajaero said.
Recall that the CBN’s directive, issued on May 6th, mandated banks to implement the deduction of the cybersecurity levy, under the 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.
This Act stipulates a 0.5% deduction from the value of all electronic transactions to fund the National Cyber Security Fund, overseen by the Office of the National Security Adviser (NSA).
Financial institutions were also instructed to commence deductions two weeks after the circular’s issuance.
