LCCI kicks against CBN’s cybersecurity levy

The Lagos Chamber of Commerce and Industry (LCCI) has kicked against the recent cybersecurity levy imposed by the Central Bank of Nigeria (CBN) on electronic banking transactions.

Chinyere Almona, director general of LCCI, said individuals and businesses will be burdened with additional levies amidst other debilitating issues they face like low power supply.

“We urge the government to reconsider the implementation of this directive as its timing is wrong, and the justification is unclear. This directive should be withdrawn while we call for more consultations with critical stakeholders,” Almona said.

She noted that the federal government ought to look into policies that will reduce the living standard of Nigerians struggling with escalating inflation and low purchasing power due to the weak naira.

Almona added that more additional costs for Nigerians, especially people in business, will “slow down economic activities and drag growth.”

According to her, since the collection of this levy cannot guarantee the protection of payers against cyber attacks, its collection is uncalled for at this time.

“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,” she said.

“This can negatively impact the achievements already recorded with the cashless policy,” she added.

She encouraged the federal government to work towards amending enabling laws to reflect the current realities of Nigerians.

Also, she urged the federal government to initiate programmes that would expand economic growth, emphasising investment in digital infrastructure to support business owners.

“We also urge the government to harmonise its tax initiatives with the work done by the Presidential Committee on Tax and Fiscal Reforms to prevent multiple taxations and poor coordination of the expected new tax regime,” she stated.