NESG Criticizes CBN’s Cybersecurity Levy: Calls for Proper Sequencing of Reforms

The Nigerian Economic Summit Group (NESG) has expressed concerns over the Central Bank of Nigeria’s (CBN) recently introduced cybersecurity levy.
In a statement, the NESG’s chief executive officer, Dr. Tayo Aduloju, argued that the levy comes at a time of rising inflation and living costs, which could further strain the Nigerian economy and its citizens.
The NESG criticized the timing of the levy, citing the current cost of living crisis and high inflation rates as factors that could negatively impact the populace.
Aduloju suggested that the levy should be targeted at high-net-worth individuals and that a specific amount transferred electronically could help alleviate the fears of the general public.
Additionally, the NESG raised concerns about the potential impact of the cybersecurity levy on the government’s revenue from electronic transfer levies.
The group believes that the policy could discourage electronic funds transfers, ultimately leading to a loss of revenue for the government.
The NESG urged the government to be cautious in implementing policies that could further strain the purchasing power and welfare of both corporations and individuals.
The group called for proper sequencing of reforms to ensure efficient socioeconomic outcomes, particularly in light of other recent policy changes, such as fuel subsidy removal, exchange rate reform, and electricity subsidy removal.
Aduloju emphasized that the policy was introduced while the Presidential Committee on Fiscal Policy and Tax Reforms was still finalizing its mandate, potentially leading to conflicts of interest and policy misalignment.
The NESG suggested that the implementation of the cybersecurity levy should be deferred until the Fiscal Policy Committee deems it necessary.
While acknowledging the exemptions highlighted by the CBN, the NESG stressed the need for the monetary authority to monitor banks’ implementation of the levy to prevent citizen exploitation.
The group also emphasized the importance of developing an effective and practical framework to limit the levy to only liable transactions.
The NESG acknowledged the intentions of the policy to combat cybercrimes and increase government revenue, but argued that higher revenue should be achieved without imposing additional burdens on poor and vulnerable Nigerians.
The group also pointed out that the cybersecurity levy could create loopholes for cybercriminals to devise alternative methods for committing cybercrimes.
To address this issue, the NESG proposed an integrated approach to fighting cybercrimes, involving collaboration between financial institutions, security agents, the Economic and Financial Crimes Commission (EFCC), and other key stakeholders.
Share this news

Subscribe to the Advocate News letter and receive news updates daily in your inbox.

Check Also

LG Polls: Delta women protest, accuses Oborevwori’s Aide of robbing Okagbare of his ticket through backdoor

By Ovasa Ogaga, Peoples Democratic Party, (PDP) women in Agbarha-Otor, Ughelli North local government area …

Leave a Reply

Your email address will not be published. Required fields are marked *