The 2023 Labour Party’s presidential contender, Peter Obi, has expressed strong disapproval of the Federal Government’s newly introduced 0.5% cybersecurity levy on all bank transactions.
The Central Bank of Nigeria has directed banks to collect and remit this levy on electronic transactions, which will be administered by the Office of the National Security Adviser.
Obi has described this move as an unjust burden on Nigerians who are already struggling to make ends meet.
He argues that this new levy contradicts the government’s stated intention to simplify the tax code and reduce taxes to ease the impact of naira depreciation and high inflation on businesses.
In a series of tweets, Obi has questioned the logic behind this move, wondering when the NSA’s office became responsible for collecting revenue.
He has rejected the cybersecurity levy in its entirety, citing the unnecessary hardship it will impose on Nigerians.
Obi’s criticism highlights the need for a more thoughtful and considerate approach to taxation and economic policy.
His post on X reads, “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.
“This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system.
“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.
“At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue collecting centre?
“And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law?”
