Cybersecurity Levy Will Impact Nigerian Economy Negatively’

Emma Okonji

Two advocacy groups, Nigeria Internet Group (NIG), and the Nigeria Computer Society (NCS), have kicked against the planned introduction of cybersecurity levy by the Central Bank of Nigeria (CBN), highlighting its implications for both the Nigerian economy and businesses.

According to the groups, the cybersecurity levy, if introduced, would impact negatively on the Nigerian economy, businesses and consumers. They therefore urged CBN to consider alternative approaches to strengthening cybersecurity without unduly burdening the Nigerian populace.

President of NIG, Mr. Destiny Amana in a statement, said: “The recent announcement by the Central Bank of Nigeria (CBN) regarding the introduction of a cybersecurity levy on electronic transactions is a matter of grave concern. The levy, pegged at 0.5 per cent of all electronic transaction values, is purportedly a provision of the recently passed 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.

“While we recognise the importance of cybersecurity measures in safeguarding our digital infrastructure and protecting against cyber threats, we cannot ignore the potential negative impact of this levy on the Nigerian economy, businesses, and consumers.

“The imposition of a cybersecurity levy on electronic transactions is not only burdensome but also raises questions about its necessity and effectiveness in addressing cyber threats. We are deeply concerned about the potential for this levy to stifle innovation, hinder financial inclusion efforts, and place undue financial burdens on individuals and businesses, particularly small and medium-sized enterprises (SMEs).”

Executive Secretary, Information Technology Systems and Security Professionals (ITSSP) of the Nigeria Computer Society (NCS), Mr. Rogba Adeoye, who spoke to THISDAY in a telephone interview, said the cybersecurity levy had been in the Cybercrime Act from inception in 2015, when the Cybercrime Bill was signed and passed into law as an Act, but argued that what was initially in the Cybercrime Act was 0.05 per cent cybercrime levy, which amounts to N5 levy for every N10,000.00 electronic transaction and that no date was fixed for its implementation. According to him, the cybercrime levy was raised to 0.5 per cent when it was recently amended, which amounts to N50 levy for every N10,000.00 electronic transaction, with a plan to begin its implementation on May 20, 2024.

He argued that CBN did not take industry stakeholders into consideration, while amending the Cybercrime Act, insisting that the hike will impact negatively on the economy and businesses.