Cybersecurity levy illogical -TUC

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The Trade Union Congress of Nigeria, TUC, has threatened a shutdown of the economy over the plan to begin implementation of the 0.5 per cent cyber security levy on electronic transactions.

 

 

The union’s president, Festus Osifo, gave the warning in a statement on Wednesday.

The body called on the Federal Government to order the Central Bank of Nigeria, CBN, to withdraw its directive to financial institutions on the issue, to avert the shutdown.

MAGIC FM reports that the CBN recently directed banks to implement the 0.5 per cent cybersecurity levy on electronic transactions starting May 20.

According to the apex bank, the directive followed the enactment of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024.

It said that the proceeds were to be remitted to the National Cybersecurity Fund, which would be administered by the Office of the National Security Adviser.

Osifo described such a plan as illogical, coming at a time when Nigerians were grappling with a high cost of living.

He said that such a high cost of living was imposed by the devaluation of the naira, the hyperhike in the cost of petrol, and the supersonic increment in the cost of electricity tariff, among others.

“We are quite disturbed that since the inception of this administration, its policies have brought pain, anguish and sorrow to Nigerians.

“Whereas a bank account holder in Nigeria today is currently charged stamp duty, transfer fee, VAT on transfer fee, and all forms of account maintenance levies by both government and the banks, this burden seems not to be enough, as government is poised to inflict further pain on the already battered Nigerians.

“So, many policies of this government are not only imposing hardship on the downtrodden Nigerians but also businesses, as some of them are shutting down because of the unfriendly business environment,” he said.

The union leader expressed fears that the development would further encourage people to hoard cash at home, reduce financial inclusion, increase poverty and exacerbate the misery index.

According to him, all Nigerians are interested in right now is the urgent conclusion of discussions around the minimum wage.

“Not a vexatious policy that is further reducing the already depleted disposable income of the masses and indirectly ridiculing the gain which the minimum wage would have brought to the people when concluded,” he added.