TheCable

The Northern Elders Forum (NEF) says the implementation of the cybersecurity levy for electronic transactions will worsen the financial burden of citizens.

In a statement on Thursday, Abdula-Azeez Suleiman, spokesperson of the forum, said the policy is “illegal and not in tune with challenges confronting Nigerians”.

On May 6, the Central Bank of Nigeria (CBN) ordered banks and other financial institutions to enforce a 0.5 cybersecurity levy on electronic transactions.

The development followed the amendment of the Cybercrime Act.

Suleiman said cybersecurity is crucial in protecting electronic transactions, noting that the country is already facing economic challenges.

“The introduction of cybersecurity levies, in addition to existing fees such as stamp duty, transfer fees, value-added tax, and SMS charges, has placed an unbearable financial burden on individuals engaging in electronic transactions,” the statement reads.

“The various charges that bank customers now face, including cybersecurity levies ranging from ₦5 on ₦1,000 to ₦50,000 on ₦10,000,000 transactions, transfer fees, stamp duty, and value-added tax.”

Suleiman called on the federal government to review the policy and consider other alternative measures that promote electronic transfer and reduce the financial burden on citizens.

“It is imperative that the administration takes into account the concerns raised by a vast majority of Nigerians and prioritises policies that protect the interests of the people while also fostering economic growth and development,” he added.

“It is crucial that the government listens to the concerns of organisations like the NEF and work towards implementing policies that benefit all Nigerians, rather than burdening them with additional costs and hardships.

“It is essential to strike a delicate balance between enhancing cybersecurity and easing the financial burden on the populace, particularly when the Nigerian economy is facing significant challenges due to inflation and other economic factors.”