Cyber Security Levy Contention

 Cyber Security Levy Contention By Kenny Odugbemi

CBN Gorvernor, Yemi Cardoso.

CBN direct all banks to commence deduction of 0.5%™of thier source transaction sum as cyber security levy to be credit into cyber security fund action to be solely managed by the office of National Security advicer

This bill was signed into law in 2015 by former President Good luck Jonathan without in any substantial implementation till date

This pronouncement gas created furore and hullabaloo for wrong timing,without giving due consideration  to our current absymal, dwindling,and strangulating economy

There are insuanuation of wrong interpretation according to Act establishing the neccesitating,the 0.5% deduction ought to be on associated charge fee on every transaction as we already have surge in cost of fund, inadequate forex, extremely poor economy and low purchasing power of Customers

Another school of thought maintained that this is duplicating existing charge on cyber security digital infrastructure of about 0.25© on profit charged though NARSENI

The third school of though is that why must NSA in charge lof N3trn appropriated Security budget giving sole right to manage this account,the basis and fundamental of this decision remain very obscured,not transparent and highly political

The fourth school of thought,there was no consumer engagement to harness opinion and scope of service remain evasive

The fifth school of thought is that this move by CBN contradict the establishment of Presidential tax force, who ate working assiduously to reduce unsolicited tax and levies to reduce burden on individual and Corporate organization

The sixth School of thought is Government have introduced audacious policies that are repulsive and reactive and Nigerian are going through hardtime,despite having 133million multidimensionally poor citizens and all cushion ing effect has not produced any fruit ful result due to systemic corruption by MDA’s -Edugate us a typical example and Student loan is still in limbo whilst refining of crude oil is still work in progress putting Nigerian into deplorable situation As we have all economic induce in Red” indicating extremely poor performance 

We have the following existing policies though neccessary but are poorly implemented

Fuel subsidy

Forex unification

Hikes in energy tarrif

Depleting foreign reserve use to pay outstanding debt and  moves to stabilize Naira that is toxically fluidy

It worthy to outline  bank transaction current charges on individual

These includes

Transfer fee

Card maintenance and renewal

Value added service

Short message

VAT on SMS

Outflow)inflow fee

USSD charges

** Personal income tax

Corporate organization

Company tax

Tertiary education trust fund

Police trust fund

NYSC levy

Stamp duties etc

Economic Vitals

Fy2023

E-payment N600trn(CyberSecurity Fund @N3trn

Bank charge N1.550 ten

Conclusion

This levy will introduce another heavy burden to exploit vulnerable poor Nigeria oppressed and suppressed by monumental poverty

It will further hamper financial inclusion which is at 70% considering the following critical targeted sector

Insurance companies

Banks

Stock exchange

Telecom MNO, who are already gearing to increase all tarrif on direct calls and digital services due to dwindling forex,high inflation,low consumer patronage which made them to record huge loss wiping out shareholders fund and nonnremitance of over N200million USSID charges by various banks

This recent levy will frustrate cashless transaction policy as many will be force to use cash which is risky of being expose to theft but gang criminal who rib banks and individual frequently before the advent of increase in financial inclusion

Federal Government,CBN must retract on this move to avoid further apathy as aforementioned