Cybersecurity levy unreasonable, says TUC

The organization urged the Federal Government to command the Central Bank of Nigeria (CBN) to retract its instruction to financial institutions regarding this matter to prevent the shutdown.

The Trade Union Congress of Nigeria (TUC) has warned of a potential economic shutdown due to the proposed initiation of a 0.5% cybersecurity levy on digital transactions.

Festus Osifo, the union's president, issued the caution in a Wednesday statement.

The organization urged the Federal Government to command the Central Bank of Nigeria (CBN) to retract its instruction to financial institutions regarding this matter to prevent the shutdown.

DAILY POST has reported that the CBN instructed banks to begin applying the 0.5% cybersecurity levy on electronic transactions from May 20.

The CBN stated that this directive comes after the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 was passed.

The funds collected are to be transferred to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser, according to the bank.

Osifo criticized the plan as irrational, especially during a period when Nigerians are dealing with elevated living costs.

He attributed the increased cost of living to factors such as the naira's devaluation, a significant rise in petrol prices, and a steep hike in electricity tariffs, among other things.

"We are deeply troubled that the policies of this administration from its start have only caused suffering, distress, and grief to the Nigerian people.

"Currently, Nigerian bank account holders are subjected to stamp duty, transfer fees, VAT on those fees, and various account maintenance charges by both the government and banks. Yet, it appears this load is insufficient, as the government is determined to impose more hardship on the already struggling Nigerians.

"Numerous policies of this administration are not just burdening the common Nigerians but also affecting businesses, leading to shutdowns due to the hostile business climate," he remarked.

The union leader voiced concerns that this move might lead to increased cash hoarding, a decline in financial inclusion, heightened poverty, and a worsening misery index.

He pointed out that what Nigerians need at the moment is a swift resolution to the minimum wage discussions.

"Not an aggravating policy that will further cut into the scant disposable income of the populace and indirectly make a mockery of the benefits that the minimum wage is expected to bring once finalized," he concluded.

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