Expressing their disapproval, the Nigeria Labour Congress, NLC, has rejected the recent implementation of a 0.5% cybersecurity levy on electronic transfers by the Central Bank of Nigeria, CBN.
In a statement released to the press in Abuja on Tuesday, NLC President Joe Ajaero voiced the organization’s stance on the matter.
Ajaero responded to a recent circular from the CBN instructing banks and payment service providers to apply the levy within two weeks.
Labeling the move as potentially worsening the economic hardship faced by the populace, the CBN justified the levy as a measure to enhance cybersecurity.
The NLC President strongly criticized the directive, demanding an immediate halt and reversal of the policy, highlighting that this additional cost burden on Nigerians is unfair, especially during these challenging times.
While acknowledging the importance of cybersecurity in the digital era, the NLC emphasized that imposing such a levy on electronic transactions without considering its impact on workers and vulnerable groups is unwarranted.
“The Nigeria Labour Congress recognizes the necessity of cybersecurity in today’s digital world. However, imposing this levy on electronic transactions without regard for its consequences on workers and vulnerable segments of society is unjustifiable,” expressed Ajaero.
He condemned the levy as an excessive taxation on Nigerians, adding to their financial obligations unfairly, portraying it as another strategy by the ruling class to exploit workers and the masses.
While acknowledging the exemption of interbank transfers and loan transactions from the levy by the CBN, Ajaero stressed that the broader effects on everyday transactions cannot be ignored.
Ajaero pointed out that such deductions directly impact workers’ disposable income, further weakening the purchasing power of ordinary citizens, also noting the adverse effects on local manufacturers and businesses already struggling due to the challenging economic conditions.
He criticized the government for failing to create a conducive business environment that promotes increased investment in the economy, suggesting that the current approach seems to do the opposite.
Calling on the Federal Government to reconsider its directives, Ajaero urged for policies that ease the financial burdens on Nigerians.
“We call for a collaborative effort between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not overly burden the population. We reaffirm our commitment to advocating for the rights and welfare of Nigerian workers and the general population,” he concluded.