ATCON Kicks against CBN’s Order on 0.005% Cyber Security Levy
The Association of Telecommunications Companies of Nigeria (ATCON), umbrella body of telecoms operating companies in Nigeria has kicked against the recent directive by the Central Bank of Nigeria (CBN) that all banks should collect 0.005 per cent levy on all electronic transactions into a National Cyber Security Fund account within the CBN.
The National President of ATCON, Mr. Olusola Teniola, who briefed journalists on the issue, said the directive would be inimical to the growth of several businesses that have been compelled to make the 0.005 per cent remittance out of their squeezed income, owing to several other remittances such businesses have been involved in through levies imposed on them by the federal, state and local government agencies.
He listed such businesses to include GSM Service Providers and all telecommunication companies; Internet service providers; Banks and other financial institutions; Insurance companies and Nigerian Stock Exchange, among others.
“The eventual implementation of the levy of 0.005% would cripple if not render useless government and private sector efforts to speed up the broadband penetration in Nigeria and our association has a mandate to protect the investment in the telecom industry from undue pressure from the government in the form of yet additional burden on our members that are already overtaxed by all tiers of governments,” Teniola said.
As a premier association that was formed by technocrats in the telecoms industry to facilitate as well as accelerate the growth and adoption of broadband for the purpose of socio-economic development of Nigeria to enable the country stay ahead of innovation in the 21st century, the association would do everything possible to protect its members from undue financial pressure from government, Teniola added.
Giving reasons for ATCON’s rejection of the 0.0005 per cent remittance, other executive members of ATCON said: “The Cybercrime Act 2015, Section 44 that the CBN seeks to implement, states in Section 44, an establishment of a National Cyber Security Fund. In Section 44.2 (a), a Levy of 0.005 of all electronic transactions by the businesses specified in the second schedule to this Act. Where in the Schedule five categories including GSM Service providers and all telecommunication companies and Internet Service Providers are to apply this charge.”
ATCON, they said, believes any premeditated actions that are capable of killing the telecoms industry must be eschewed by all tiers of governments in Nigeria as the perceived benefits of imposing this levy on aforementioned businesses have the direct capability to erase if not destroy the achievements that have been made since the telecoms sector was liberated.
“We therefore advise government to review this directive as it would affect some macro-economic elements such as loss of employment and we as Industry will have to increase prices to cover the collection, processing and pass on these costs to the 150 million subscribers,” they further said.