Threatening an economic shutdown, the Trade Union Congress of Nigeria, TUC, criticized the plan to implement a 0.5% cybersecurity levy on electronic transactions.
In a statement on Wednesday, TUC President Festus Osifo issued the warning, urging the Federal Government to instruct the Central Bank of Nigeria, CBN, to retract its directive to financial institutions regarding the levy to prevent the impending shutdown.
The recent directive from the CBN instructed banks to commence the 0.5% cybersecurity levy on electronic transactions from May 20.
Citing the passage of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, the apex bank stated that the proceeds were to be channeled to the National Cybersecurity Fund administered by the Office of the National Security Adviser.
Brandishing the plan as illogical, Osifo questioned its rationale given the current economic challenges faced by Nigerians.
He attributed the harsh economic conditions to the devaluation of the naira, considerable increases in fuel prices, and significant rises in electricity tariffs, among other factors.
Expressing dismay over the detrimental impact of the government’s policies on citizens and businesses, Osifo articulated concerns about the potential repercussions of the levy on cash hoarding, financial inclusion, poverty levels, and overall hardship faced by the populace.
Osifo emphasized the pressing need for a swift resolution on minimum wage deliberations, asserting that introducing further financial burdens undermines the potential relief that an increased minimum wage could bring to the people.