HomeBUSINESSThe Impact of the Cyber security Levy on Nigeria Economy

The Impact of the Cyber security Levy on Nigeria Economy

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By_ Agbagba Bukola
On the 6th of May, 2024, the Central Bank of Nigeria directed all banks to charge 0.5 percent levy on all electronic transactions within the country. In the released circular, this levy was referred to as the cybersecurity levy. Following the announcement, there were mixed feelings from Nigerans especially Netizens who aired their opinions across various social media platforms in Nigeria. Some believe that the step is necessary and commend the government for its commitment to creating a better economy in while other bashed the policy makers for their insensitivity and referred to the action as a rip-off.
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What is even more interesting is that the implementation is to take place in two weeks, starting from the 6th of May, 2024 when it was announced. With such huge announcement, one will hope that the policy makers will take their time to sensitise the public on the new policy and how it will help skyrock the receding economy.
The circular explaining this policy reads thus:
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and under the provision of Section 44 (2)(a) of the Act, a levy of 0.5 per cent (0.005) equivalent to a half per cent of all electronic transactions value by the business specified in the Second Schedule of the Act, is to be remitted to the National Cybersecurity Fund which shall be administered by the Office of the National Security Adviser.”
Firstly, it is important to know that 0.5% is equivalent to 0.005 (which is half of 1 percent). 0.005 is the decimal representation of 0.5%.
Hence, this entails that CBN will deduct 0.5% of any transfer made in accordance with the stipulated guidelines (see what to know)
For instance, if a customer wants to transfer the sum of N10,000. Following the new CBN directive, the customer will be charged N50 for cybersecurity levy, this is aside from bank charges or any other charges incurred on bank transactions such as VAT, etc.
Following the known information about the new policy, there are concerns on how it will help to better the economy especially in terms of where the money will be utilised. Also, following the economic recession and hike in the price of fuel, how can the policy makers justify the cybersecurity levy?

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