President Bola Tinubu intervening in the ongoing controversy surrounding Nigeria’s cybersecurity levy policy, directs the suspension of levy. This move follows mounting pressure from the House of Representatives, which recently called for the withdrawal of the CBN’s circular mandating a 0.5 per cent levy on electronic transactions.
The CBN’s circular, issued on May 6, 2024, instructed financial institutions to levy a fee of 0.5 per cent on the value of all electronic transactions. The intention of this levy was to fund the National Cybersecurity Fund, which the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 established. However, the directive faced criticism from various quarters, citing concerns over its potential impact on businesses and digital transactions in Nigeria.
President Tinubu’s directive to suspend the cybersecurity levy policy reflects a concerted effort to address the growing discontent surrounding its implementation. The decision underscores the importance of a comprehensive review process to ensure the levy’s alignment with national cybersecurity objectives while mitigating adverse effects on economic activities and digital commerce.
Tax reforms are not intended to cause frustration among Nigerians- Shettima.
Vice President Kashim Shettima asserted that the tax reforms initiated by the Bola Tinubu administration aim to enhance the country’s investment climate rather than burdening Nigerians. Speaking through his Special Adviser on General Duties, Dr. Aliyu Umar, Shettima made these remarks during the conclusion of the Presidential Fiscal Policy and Tax Reforms Committee’s retreat at the Transcorp Hilton in Abuja. Shettima’s spokesperson, Mr. Stanley Nkwocha, relayed the statement in a release titled ‘Our Tax Reforms Initiated for Overall Benefits of Nigerians – VP Shettima’.
Shettima emphasized that the reforms aim to establish an administrative framework that ensures a prosperous tax system benefiting all citizens, dispelling any notions suggesting otherwise. He refuted speculations circulating in certain quarters, asserting that the government’s objective is to foster an environment conducive to investment and economic growth without imposing undue burdens on the populace.
Legal Threats and Opposition
SERAP issued a warning of potential legal action if the Federal Government did not retract the levy within 48 hours, citing its violation of constitutional provisions and international human rights obligations. Meanwhile, the Nigeria Labour Congress opposed the cybersecurity levy, arguing that it, along with other taxes, has intensified the economic challenges faced by citizens. NLC President Joe Ajaero called for the reversal of the CBN directive, urging the government to focus on implementing policies that ease the financial burdens of Nigerians.
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