The Nigerian Economic Summit Group (NESG) has voiced its concerns regarding the Federal Government’s proposed 0.5 percent cybersecurity levy, warning that it could undermine efforts to achieve 95 percent financial inclusion by 2025.
In a recent report, the NESG highlighted that the timing of the levy could hinder the Central Bank’s initiatives aimed at promoting financial inclusion and reducing currency in circulation. The group suggested that instead of a blanket levy, it should be targeted at high-net-worth individuals and transferred electronically to alleviate concerns among the populace grappling with rising food and non-food prices.
TRENDING NOW:
- 10 Advantages Of Getting A Website For Your Business
- 10 African Countries That Waste the Most Food in 2024
Moreover, the NESG emphasized that the levy contradicts the mandate of the fiscal policy committee to streamline taxes and levies, particularly at a time when the Presidential Committee on Fiscal Policy and Tax Reforms is yet to finalize its mandate.
The introduction of the cybersecurity levy risks increasing the cost of banking for Nigerians, making financial institutions appear as expensive intermediaries and fostering distrust in the financial system. The NESG cautioned that additional levies, such as stamp duty, electronic transfer levy, and VAT, could further escalate transaction costs and disrupt the financial intermediation role of banks.
To address these concerns, the NESG recommended reducing banking transaction costs to incentivize Nigerians to access financial services and discourage reliance on cash transactions. The group stressed the importance of transparency, fairness, and accountability in financial policies to bolster trust in the financial system.
YOU CAN’T MISS: We Will Revive Steel Production In Nigeria – Minister
In response to mounting opposition, the House of Representatives directed the Central Bank of Nigeria (CBN) to halt the implementation of the 0.5 percent cybersecurity levy, citing misinterpretation of the Cybercrime Act. The House urged the CBN to issue a clear and unambiguous circular to provide clarity on the matter.
As stakeholders continue to engage in dialogue over the cybersecurity levy, ensuring alignment with broader financial inclusion objectives and addressing concerns raised by the NESG are paramount. Collaborative efforts between government agencies, policymakers, and industry stakeholders are essential to strike a balance between cybersecurity measures and promoting financial inclusion in Nigeria.