Nigeria’s Cybersecurity Levy, Burden On Dying Economy, Says Peter Obi

Peter Obi, the Labour party’s presidential candidate has condemned the introduction of a cybersecurity levy, asserting that it further burdens an already dying economy.

The Central Bank of Nigeria (CBN) on Monday, ordered the implementation of 0.5 percent levy on all electronic transactions value as part of efforts to contain the rising threats of cybercrime in the financial system.

Taking to his X account on Wednesday, Obi expressed deep concern over the government’s decision, arguing that such policies drive citizens deeper into poverty while undermining the country’s economic competitiveness.

Obi emphasised the unreasonable imposition of additional taxes on Nigerian citizens who are already grappling with severe economic hardships.

Highlighting the detrimental impact of the cybersecurity levy, he pointed out its imposition on trading capital, which could exacerbate the financial strain on businesses already reeling from the effects of currency devaluation and high inflation rates.

“The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth,” Obi said.

“The imposition of a Cybersecurity Levy on bank transactions is particularly sad given that the tax is on the trading capital of businesses and not on their profit hence will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation and high inflation rate.

“It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but make the country’s economic environment less competitive.

Obi questioned the rationale behind burdening citizens with the responsibility of financing all government activities individually, criticising the government’s failure to alleviate economic pressures by introducing new taxes instead of reducing existing ones, particularly during a period of heightened inflation.

Obi questioned the role of the office of the national security adviser in revenue collection and raised concerns about the transparency and accountability surrounding the utilization of the cybersecurity fund.

Chioma Kalu

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