LCCI seeks withdrawal of security levy
• Peg charge at N500 per transaction, NACCIMA urges govt
THE Lagos Chamber of Commerce and Industr y ( LCCI) and Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture ( NACCIMA) have raised serious concern over the impacts of the new 0.5 per cent cybersecurity levy on business, seeking abrupt withdrawal or drastic reduction of the charge. While LCCI can vassed outright withdrawal, the NACCIMA on the other hand, asked the Central Bank of Nigeria ( CBN) to cap the maximum amount for the levy at N500 to ameliorate the burden on the private sector.
The Director- General of LCCI, Dr. Chinyere Almona, said the proposed cybersecurity levy is a serious cause for concern for the chamber and urged the government to withdraw the directive immediately.
She described the proposed levy as another unnecessary, additional burden for businesses and individuals. Reacting to the directive by the CBN to banks to implement section 44 of the Cybercrime Act 2024, which imposes a 0.5 per cent cybersecurity levy on Nigerians, she said individuals and businesses are being burdened with more levies amidst unsettled performance crisis with power supply after the recently reviewed electricity tariffs.
The DG regretted that the upward review of the electricity tariff has not brought about a commensurate boost in power supply to justify the additional costs to individuals and businesses and are instead, paying more for darkness.
Urging the government to reconsider the implementation of this directive as its timing is wrong, she said the justification is unclear and the directive should be withdrawn immediately while consultations with critical stakeholders get underway. Almona said that at a time when government revenues are at record levels from higher crude prices, higher revenues accrued to the Federal Allocation Account and saved resources from the stoppage of subsidies, they had expected to see projects created to enhance the living standard of the people as a dividend of democracy for the many sacrifices made by Nigerians but are instead, given extra burdens.
“In the face of biting inflation that has continued to weaken the purchasing power of consumers and with companies burdened with a rising cost of production, any further imposition of additional cost burden will slow down economic activities even more and drag our economic growth drive.”
She added that since the levy collection cannot guarantee the protection of payers from cyber- attacks, it is difficult to justify its collection. “In the same vein, the collection approach with some exemptions can create confusion regarding what transactions qualify for the exemptions. Implementing this directive can gradually encourage some people to return to holding cash to avoid paying the levy. This can negatively impact the achievement already recorded with the cashless policy.”