The Federal Government is to generate about ₦7.75 trillion annually from the cybersecurity levy to be imposed on electronic transactions in Nigeria, Centre for the Promotion of Private Enterprise (CPPE) has said.
The cybersecurity levy payment plan unveiled this week by the Central Bank of Nigeria (CBN), set at 0.5 per cent on electronic banking transactions, is expected to yield significant revenue to the coffers of government, according to Dr Muda Yusuf, Director of CPPE.
The CPPE projected that the cybersecurity levy is projected to generate between ₦3 trillion and ₦7.75 trillion annually for government.
According to CPPE, electronic payments on the NIBSS platform in 2023 totaled N600 trillion, translating to a potential N3 trillion from the levy. Additionally, industry data from 2022, amounting to N1550 trillion in electronic payments, could generate N7.75 trillion through the levy, even after accounting for exemptions.
Dr Muda Yusuf, Director of CPPE.
CPPE: Why Cybersecurity Levy will have adverse effects on Nigerians
Yusuf, a former Director General of the Lagos Chambers of Commerce and Industry, emphasized the potential financial impact of the levy, citing data from the Nigeria Interbank Settlement System (NIBSS).
According to CPPE, electronic payments on the NIBSS platform in 2023 totaled N600 trillion, translating to a potential N3 trillion from the levy. Additionally, industry data from 2022, amounting to N1550 trillion in electronic payments, could generate N7.75 trillion through the levy, even after accounting for exemptions.
Despite the revenue potential, Yusuf cautioned against the levy’s adverse effects on Nigerians, particularly regarding financial hardships and risks to the cashless policy. He is concerned that the levy might drive more Nigerians toward cash transactions, counteracting progress made in electronic payment adoption.
In light of these concerns, Yusuf wants the government to suspend the levy’s implementation and engage in broader discussions to assess its impact and necessity.
He cited the discrepancies between the cybersecurity levy’s potential revenue and budget allocations for defence and infrastructure, suggesting a need for a comprehensive review before proceeding with full implementation.
The Central Bank of Nigeria had this week directed financial and allied industry players to collect and remit the 0.5 per cent cybersecurity levy on electronic transactions to the National Security Adviser’s office to generate funds to address cybersecurity matters.
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