The recent Central Bank of Nigeria (CBN) directive imposing a 0.5% cybersecurity levy on banking transactions has sparked controversy, with the Northern Elders Forum (NEF) emerging as the latest voice of opposition.
In a statement released on Thursday by the NEF’s Director of Publicity and Advocacy, Abdul-Azeez Suleiman, the forum expressed its dissatisfaction with the policy, citing the escalating costs associated with banking transactions as a result of multiple charges.
The NEF criticised the CBN’s directive as arbitrary, illegal, and out of touch with the realities faced by Nigerians. The forum called on the government to reconsider the policy and explore alternative measures to ease the financial strain on individuals while still promoting the use of electronic payments.
“It is imperative that the administration takes into account the concerns raised by a vast majority of Nigerians and prioritises policies that protect the interests of the people while also fostering economic growth and development.
“It is crucial that the government listens to the concerns of organisations like the NEF and works towards implementing policies that benefit all Nigerians, rather than burdening them with additional costs and hardships.
“It is essential to strike a delicate balance between enhancing cybersecurity and easing the financial burden on the populace, particularly at a time when the Nigerian economy is facing significant challenges due to inflation and other economic factors,” the statement reads in part.
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The NEF’s stance adds to a growing chorus of discontent surrounding the levy. Critics, including civil society groups like SERAP, have labelled it an “extortionate” burden on Nigerians, particularly those already grappling with economic hardship.
While the CBN maintains the levy is necessary to bolster cybersecurity defences in the financial sector, the NEF reportedly views it as an additional tax on already strained finances. This aligns with previous pronouncements by the group, which has expressed concerns about economic policies perceived to disproportionately affect the north.
Uncertainties and Potential Impact
The NEF’s opposition raises questions about the potential regional implications of the levy. It’s unclear whether the group’s stance reflects broader unease in the north or represents a more isolated objection.
The impact of the levy on financial inclusion also remains to be seen. Concerns exist that it could discourage low-income earners from utilizing formal banking services, potentially hindering financial inclusion efforts.
Looking Ahead
The CBN has attempted to address concerns by exempting certain transactions, such as loan repayments and salary payments, from the levy. However, the NEF’s opposition and broader public unease suggest the issue may not be fully resolved.
It remains to be seen whether the CBN will consider revising the levy or if it will be implemented as initially announced. The coming days and weeks may see further developments as the debate surrounding the cybersecurity levy continues to unfold.
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