The Centre for the Promotion of Private Enterprise (CPPE) has projected that the Tinubu-led government will collect between N3 trillion and N7.75 trillion in one year through its newly introduced cybersecurity levy of 0.5% on electronic banking transactions.
Dr. Muda Yusuf, Director of CPPE, revealed these figures in a statement on Tuesday, urging for the suspension of the levy and citing the economic hardship faced by Nigerians.
According to Dr. Yusuf, based on data from the Nigeria Interbank Settlement System (NIBSS), the total electronic payments processed in 2023 amounted to N600 trillion. Applying the 0.5% cybersecurity levy on this figure would result in a revenue of N3 trillion for the government.
Furthermore, industry data from 2022 showed electronic payments valued at N1550 trillion, indicating that the government could potentially collect N7.75 trillion from this levy.
Dr. Yusuf, a former Director General of the Lagos Chambers of Commerce and Industry, cautioned that the cybersecurity levy poses a significant threat to the cashless policy, predicting that more Nigerians would resort to cash transactions due to this legislation.
He urged the government to halt the implementation of the levy and instead engage in broader consultations with stakeholders.
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“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 N600 trillion. 0.5 per cent of this is N3 trillion.
“The industry data of electronic payments in 2022, according to the CBN website, was N1550 trillion. 0.5 per cent of this gives N7.75 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 N3.2 trillion, and infrastructure appropriation was N1.32 trillion. These are just appropriations. Actual releases are often much less.
“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 said.
It’s important to note that the Central Bank of Nigeria has instructed all banks to collect and remit a 0.5% cybersecurity levy on electronic transactions to the office of the National Security Adviser (NSA).
