The Lagos Chamber of Commerce and Industry (LCCI) has voiced its concerns over the Central Bank of Nigeria’s (CBN) directive imposing a 0.5% cyber security levy on Nigerians, stating that it will place additional burdens on businesses and individuals. According to Dr. Chinyere Almona, the Director General of LCCI, the implementation of the levy is difficult to justify and comes at an unfavorable time.
In a statement released to Vanguard yesterday, Dr. Almona urged the government to reconsider the implementation of the directive and make amendments to the enabling law. She emphasized that the timing of the levy is inappropriate, especially considering the ongoing performance crises with power supply following the recent review of electricity tariffs.
Dr. Almona expressed concern that the upward review of electricity tariffs has not resulted in a corresponding improvement in power supply, making it challenging for individuals and businesses to bear additional costs. She called for the withdrawal of the directive and urged for more consultations with critical stakeholders.
The statement highlighted the adverse impact of the levy on economic activities and growth, particularly in the face of inflation and rising production costs for businesses. Dr. Almona emphasized that the levy collection cannot guarantee protection from cyber-attacks, making it difficult to justify its imposition at this time.
Furthermore, she raised concerns about the potential confusion surrounding exemptions and warned that the levy may encourage some individuals to revert to cash transactions to avoid payment. This, she said, could undermine the achievements of the cashless policy.
Dr. Almona urged the government to amend the enabling law to reflect current realities, initiate economic reflation programs, and invest more in digital infrastructure to support businesses. She also questioned the directive to remit the levy to the Office of the National Security Adviser, suggesting that it may not be used to enhance Nigeria’s cybersecurity architecture effectively.
In conclusion, the LCCI called for a review of the directive and a more holistic approach to addressing cybersecurity concerns while considering the economic implications for businesses and individuals in Nigeria.
