Reports: FG Could Generate ₦3 To ₦7 Trillion Annually From Cybersecurity Levy

Reports: FG Could Generate ₦3 To ₦7 Trillion Annually From Cybersecurity Levy

The Centre for the Promotion of Private Enterprise (CPPE) has projected that the Nigerian federal government stands to amass between ₦3 trillion and ₦7.75 trillion annually through its newly introduced 0.5% cybersecurity levy on electronic banking transactions……READ ALSO Lawmaker – FG Should Hire Foreign Mercenaries To Tackle Insecurity 

Dr. Muda Yusuf, Director of CPPE, revealed this estimation in a statement, expressing concerns about the levy’s potential impact on Nigerians amidst ongoing economic challenges.

The directive, issued by the Central Bank of Nigeria, mandates banks to collect and remit the cybersecurity levy to the office of the National Security Adviser (NSA).

Yusuf pointed out that electronic payments on the Nigeria Interbank Settlement System (NIBSS) platform totaled ₦600 trillion in 2023. Applying the 0.5% levy would yield ₦3 trillion in revenue.

However, he cautioned against the levy’s implementation, citing concerns about its proportionality and potential repercussions on the cashless policy. He emphasized the need for broader consultations and urged authorities to reconsider its enforcement.

Yusuf highlighted the disparity between the projected revenue from the levy and budget allocations for defense and infrastructure, raising questions about its economic rationale.

In light of these considerations, he advocated for a temporary halt to the levy’s implementation to allow for a thorough review and comprehensive stakeholder engagement.

The CPPE’s analysis underscores the complexities surrounding the cybersecurity levy and the importance of balancing revenue generation with broader economic objectives and societal welfare.

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