NLC demands immediate reversal of Cybersecurity levy

By Michael Oche

The Nigeria Labour Congress (NLC) has strongly condemned the recent directive by the Central Bank of Nigeria (CBN) to levy a 0.005 percent Cybersecurity Levy on electronic transfers in the country.

The NLC in a statement by Comrade Joe Ajaero said the levy, to be implemented by deduction at the transaction origination, is yet another burden on the shoulders of hardworking Nigerians.

Ajaero said the NLC recognizes the importance of cybersecurity in today’s digital age, but clarified that imposing such a levy on electronic transactions, without due consideration for its implications on workers and the vulnerable segments of society, is unjustifiable

Nigerian Pilot reports that the CBN in a circular, directed banks and payment service operators to affect these deductions, effective next two weeks.

The NLC said this move threatens to exacerbate the financial strain already faced by the populace.

Ajaero said, “This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities.”

“We see in this levy another gang up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses so that their cronies in various financial centres can continue wallowing in unbridled consumption. During our last May day speech we called on the government to prioritize the welfare of Nigerian workers and masses in their policy directions and actions instead of profit seeking that unleashes more pressures on the people.

“We wonder when it has become a crime for the people to save their meagre incomes in the Banks and whether it is the intention of the government to encourage people to resort once again to keeping cash and using cash transactions instead of electronic transfers which have seemed to have become an undoing for the people.

“While the CBN has exempted interbank transfers and loans transactions from this levy, the broader impact on everyday transactions cannot be overlooked. Such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen”, he added.

He noted that domestic manufacturers and other businesses are already shuttering as a result of the stifling socioeconomic environment yet, adding that instead of creating a business-friendly environment to encourage greater investments in the economy, the opposite seems to be what is being practiced.