The Association of Capital Market Academics of Nigeria (ACMAN) has expressed its concern regarding the timing of the proposed 0.5% cybersecurity levy introduced by the Central Bank of Nigeria (CBN).
ACMAN President, Professor Uche Uwaleke, in an exclusive chat with Nairametrics, said that the concern arises particularly in light of the CBN’s ongoing efforts to address financial exclusion and the escalating trend of currency circulation outside traditional banking channels.
Uwaleke noted that the implementation of such a levy poses significant drawbacks, including the potential to deter financial intermediation and complicate the efficacy of monetary policy transmission.
He added that increased banking charges could lead to a decline in bank patronage, thereby impeding the CBN’s efforts to manage inflation effectively.
The ACMAN President said that considering the government’s commitment to revenue generation strategies that do not involve the introduction of new taxes or the escalation of existing tax rates, it is advisable to reconsider the implementation of this levy.
In light of this, Uwaleke suggested a withdrawal of the circular proposing the levy, particularly given the assurances provided by the government.
Furthermore, Uwaleke advocated for a suspension of the policy while prioritizing the implementation of recommendations outlined by the Presidential Committee on Fiscal Policy and Tax Reforms.
This committee’s mandate, according to him, includes the consolidation and rationalization of multiple taxes and levies that currently pose barriers to business growth within Nigeria.
Uwaleke noted that such measures align with the broader objectives of fostering a conducive economic environment and supporting sustainable growth.
Nairametrics reported that the CBN mandated banks and other payment service providers to begin deducting 0.5% of the total value of electronic transactions and remit to the National Cybersecurity Fund to be managed by the Office of the National Security Adviser (ONSA).
The apex bank noted that the policy is part of the implementation of the recently passed Cybercrime, (Prohibition and Prevention etc.) Act of 2024.
The levy’s introduction has elicited criticism from various stakeholders, particularly from private sector entities. Despite certain exemptions outlined within the levy, concerns have been raised regarding its potential to impede the objectives of the central bank’s cashless policy initiative.