Cybersecurity levy: Justify higher revenue gains, instead of additional taxes, LCCI tells FG

The Lagos Chamber of Commerce and Industry (LCCI), has asked the federal government to pre-occupy itself with how to justify the increased revenue gains from higher crude prices and saved resources, from stoppage of subsidies, rather than introduce another levy on the overburdened Nigerians.

The Central Bank of Nigeria (CBN), recently issued a directive, to the nation’s banks, to implement Section 44 of the Cybercrime Act 2024, which imposes a 0.5% cybersecurity levy on Nigerians.

The Chamber, in a statement issued on Wednesday, and signed by its Director General, Dr. Chinyere Almona, argued that Nigerians expected to see projects created to enhance their living standards, from those revenue gains, as a dividend of democracy for the sacrifices so far made, and not another levy, as being planned by the apex bank 

It stated further that further imposition of additional cost burden on the populace, in the face of biting inflation that has continued to weaken the purchasing power of consumers, and the bottom- lines of companies, would slow down economic activities and drag down the nation’s economic growth. 

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LCCI argued that there was no justification for the levy since its collection would not guarantee the protection of payers from cyber-attacks.

It also faulted some exemptions from the levy, noting that that could create confusion, regarding what transactions really qualify for such exemptions.

“Implementing this directive can gradually encourage some people to return to holding cash to avoid paying the levy. This can negatively impact the achievement already recorded with the cashless policy.

“As we advance, we urge the government to work towards amending the enabling law to reflect current realities, initiate programmes that reflate the economy, and invest more in digital infrastructure to support business operations,” it stated.

The Chamber also queried the directive that the remittance of the levy should go to the Office of National Security Adviser, describing it as suggesting the funds might not be used to enhance the nation’s cybersecurity architecture to guarantee cyber-safety for technology users in Nigeria. 

It therefore urged the government to harmonize its tax initiatives with the work done by the Presidential Committee on Tax and Fiscal Reforms to prevent multiple taxations and poor coordination of the expected new tax regime.

“This directive should therefore be withdrawn while we call for more consultations with critical stakeholders”, the business advocacy group stated.