Revealing a noteworthy projection, the Centre for the Promotion of Private Enterprise (CPPE) suggests that the Nigerian federal government could potentially accrue between N3 trillion and N7.75 trillion annually through its newly implemented cybersecurity levy of 0.5% on electronic banking transactions.
In a statement released on Tuesday, Dr. Muda Yusuf, the Director of CPPE, voiced concerns about the financial burden this levy imposes on Nigerians, urging for its temporary suspension.
Citing data from the Nigeria Interbank Settlement System (NIBSS), Dr. Yusuf highlighted that the NIBSS recorded electronic payments totaling N600 trillion in 2023. If the 0.5% cybersecurity levy is applied, the revenue generated would amount to N3 trillion.
Furthermore, industry statistics from 2022 indicate electronic payments reaching N1550 trillion, projecting potential revenue of N7.75 trillion from the cybersecurity levy.
Dr. Yusuf, a former Director General of the Lagos Chambers of Commerce and Industry, expressed concern about the adverse impact of the levy on the cashless policy and predicted a shift towards cash transactions among Nigerians due to the levy.
He appealed to the government to halt the implementation and engage in broader consultations to address these pressing issues.
“This is an inopportune time to introduce an additional levy on businesses and citizens,” remarked Dr. Yusuf.
Highlighting the disproportionality of revenue mobilization compared to the policy objectives, he emphasized the substantial financial burden imposed by the levy.
Dr. Yusuf drew attention to the significant disparity between the cybersecurity levy revenue projections and the allocated budget for defense and security, which raises concerns about the sustainability of such a financial imposition.
With regard to the cashless policy overseen by the central bank, there are apprehensions about the levy’s potential impact on driving a resurgence of cash transactions over electronic platforms.
As Dr. Yusuf concluded, “We request the competent authorities to pause the enforcement of this legislation to conduct a comprehensive reassessment to ensure its appropriateness.”
It is worth recalling that the Central Bank of Nigeria instructed all banks to impose and remit a 0.5% cybersecurity levy on electronic transactions to the office of the National Security Adviser (NSA).