In response to the recent directive from the Central Bank of Nigeria (CBN) regarding a 0.5% cybersecurity levy on electronic transfers, the Nigeria Labour Congress (NLC) has expressed its objection. NLC President Joe Ajaero conveyed the organization’s stance in a statement released to the press in Abuja on Tuesday.
The move by the CBN, requiring banks and payment service providers to implement the levy within two weeks, prompted Ajaero’s reaction. The CBN stated that the initiative, ostensibly aimed at enhancing cybersecurity measures, could further strain the financial situation of the people.
Ajaero strongly criticized the directive, calling for an immediate halt and reversal of the policy. He decried the levy, which would be deducted at the start of transactions, as an additional burden on the already hardworking Nigerians.
While acknowledging the importance of cybersecurity in today’s digital era, Ajaero argued that imposing such a levy on electronic transactions without considering its impact on workers and vulnerable groups is unjustifiable. He viewed the levy as excessive taxation, accusing the ruling class of continuing to exploit workers and the masses.
Despite exemptions for interbank transfers and loan transactions, the broader implications on daily transactions were not overlooked, according to Ajaero. He highlighted how these deductions directly reduce workers’ disposable income and weaken the purchasing power of ordinary citizens.
Ajaero also pointed out the adverse effects on domestic manufacturers and businesses, citing closures due to the challenging economic climate. He criticized the lack of a business-friendly environment that could attract more investments into the economy.
The NLC president urged the Federal Government to reassess the directives and focus on policies that ease the financial burdens on Nigerians. He called for a collaborative effort among the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not excessively burden the population. Ajaero reiterated the NLC’s commitment to advocating for the rights and well-being of Nigerian workers and the general public.